financial 09122013

CMYK

DECEMBER 9, , , , , 20132013201320132013

Continues on page 18

Nigerians whosubscribe to pay

TV are now at thereceiving end. Most ofthe time, they say theypay for services that arenot delivered.Severally, themanagement of pay TVcompanies has calledpress briefings andcustomers’ fora toaddress some of thesebiting issuesconcerning theiroperations, particularly,with off time lost signalsby subscribers whichlasts for days beforesignals are restored.

As of today,subscribers are at a lossas to who pays for thelost days. ChikaodiliIgwe, a UnitedK i n g d o m - b a s e dNigerian who cameback to the countryrecently, was at aMultichoice agentoffice, and said thatrendering goodservices to Nigerianswas far from the official

Nigeriansgroan underMultichoice’spay tv bemoan poor quality, highfees and lost signals

By PRINCEWILL EKWUJURU

policy of the company in the country. “You will lose the chances of enjoyingwhat you paid for while Multi-Choicesmiles to Johannesburg, South Africa,with your cash,” he said. Yusuf Kale,

STATES INTERNALLY GENERATED REVENUE SUMMARY (2010 - 2012)

CURRENCY BUYING CENTRAL SELLING

CBN Exchange rate as at 06/12/2013

111.41 +0.43

111.41 +0.43

106.05 0.65

2,820.00 +58.00

16.59 -0.1

DOLLAR 154.73 155.23 155.73STERLING 253.1692 253.9873 254.8054EURO 211.5623 212.246 212.9296FRANC 172.7283 173.2864 173.8446YEN 1.5149 1.5198 1.5247CFA 0.3017 0.3117 0.3217WAUA 236.7001 237.465 238.2299RENMINBI 25.4397 25.5224 25.6051RIYAL 41.2525 41.3858 41.5191KRONA 28.356 28.4476 28.5392SDR 237.4641 238.2315 38.9988

Source: National Bureau of Statistics

CMYK

18 — Vanguard, MONDAY, DECEMBER 9, 2013

Continues from page 17


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,

Cover Story

Nigerians groan under Multichoice’spay tv, — bemoan poor quality, highfees and lost signals

who said he has been aregular customer of DStvsince 2004 noted that at theinitial stage, services ofMultichoice to Nigerianswere satisfactory, but that astime went on, it appeared tolose focus, “perhaps aspatronage increased.”

He said like many of hisfriends, he has startedseeking other cheaper pay TVproviders. He explained thatthe only thing that still keepshim with the company is theEuropean League matches,but confessed that he wasprepared to start watchingsuch games at viewingcentres.

“I think DStv is forgetting itis now a competitive market,although those other pay TVcompanies are not as big butNigerians are beginning torate them to be more effective.They even have moreentertaining programmes,”he stated. Jide Makanjuola,another DStv subscriber, saidthe cost of subscribing to thecompany was equivalent tofinancial suicide. Like Kale,he said Nigerians werebecoming more enlightenedand that most young usersnow prefer viewing sites torecharging their decoders. “Itpays far better to pay a peanutat the viewing centre andsave your money. The manthat owns the viewing centrewill make his money but youthat subscribe at home willlose in the end,” he said.

A subscriber who identifiedhimself as Alhaji Belloqueried the pay TV for beingdisconnected before theexpiration date. Others alsocomplained of similar problem

but not taking into cognisancethe fact that they did not enjoythe services as they shoulddue to the fact that weatherconditions and several otherfactors beyond their control,cut short the times theyenjoyed their subscription.

Other affected subscribersare also complaining that theyare cut off sometimes two tothree days before theexpiration date ofsubscription. "This is anaction the company is noteven apologetic about," Simon

Irete said. “What is annoyingto many is that they aresurcharged for late renewalwhile lost time is not paid forby the service provider.” Astaff at Multichoice office saidthat the surcharge is as aresult of a computerprogramme that the companyhas put in place

“For example, where acustomer fails to paysubscription fee on or beforedue date, it takes DSTV hours,if not days, to come back totransmission, but forStarTimes, it is immediate,even after two weeks off air,”

Mr. Obinna Nwokennaya, asubscriber to both pay TVowners explained.

The activities of DSTVmanagement bring to mindthe story of MTN when theycame into Nigeria. They toldNigerians that per secondbilling was not achievableuntil after about 10 years,but when Glo launched theper second billing system,MTN had to adjust to persecond billing, a feat theyclaimed was notachievable. Are these SouthAfrican companies out todrain Nigerians?” Mrs. UjuAmanjo queried.

Amanjo said that DSTVincreases tariff over time.“Having launched pseudopromo few months ago,they (DSTV) hit back witha new tariff regime forpremium subscribers.

For three years, I havebeen DSTV subscriber andpremium subscriber. I haveto delay my subscriptionthis month to show myanger. They have onlyadded Telemundo and afew channels that are notviewer-friendly.”

Despite having movedfrom W4 to W7 as promisedat a forum, subscribers stillexperience poor picturequality during and afterrainfall, and sometimes stillpictures, even whencustomer’s subscription isstill running. For the dayswasted, who compensatesand who extends the dayslost? All these complaintsDSTV management has notbeen able to addressdespite subscribers’constant complaints at

The Entrepreneurial Revolution:A New Order for Nigeria PT 2

Significant lessons could also be learnt from MargaretThatcher’s economic policies that propelled Britain to an

economic boom in the ‘80s through extensive promotion ofentrepreneurial initiative and share-ownership. Thatcherism’s thruston substituting debt with equity spawned colossal economicdevelopment in the UK, which was soon adapted and replicatedacross Southeast Asia.

In the 20th century the USA traded their entrepreneurial revolutionwhich they enjoyed in the previous 200years and began a 50 yearsstint of dependence on the modern day corporation. The myth ofjob security prevailed in the past 50 years. This is now gone.Renowned historians like Will Durant wrote about this in 1944leaders like Mahatma Gandhi, Franklin Roosevelt and StephenCovey had written and spoken about it.

For sure, Africa represents uniquely different realities andchallenges, and there is no effective model than can be entirelytransplanted here. Policy makers must prioritise institutional effortsto compensate for reigning socio-economic realities. Nigerianinitiatives to pursue financial restructuring, for instance, have beenlargely hamstrung due to civil and political unrest. Likewise,Abuja’s insistence on micro-enterprises, instead of small-scaleventures, has done little to help its burgeoning urban unemployedwork force.

A viable economic agenda for Nigeria that allows rapidentrepreneurial progress has to focus on fundamental adjustments:

•Creating a pro-active socio-economic environment thatencourages creative and viable entrepreneurship from the grassrootslevel up. Indentifying and correcting infrastructure deficits andsystemic imbalance inimical to small business.

•Developing a credit regime – through relevant financial andindustrial policy changes – that is sympathetic to small businessrealities. Promotion of lending through equity, and not debt, is ofcritical importance.

•Removing administrative and trade barriers while simultaneouslyenhancing technical support and capacity building assistance forboth existing and emerging entrepreneurs.

•Mobilising the country’s significant human resources pool byrevamping the education sector to provide vocational, administrativeand skill development training to rural and urban youths.

•Creating efficient and effective mechanisms for regulation andoversight of enterprise-development initiatives in general, andmicrofinance institutions in particular.

•Maintaining political stability and authority of democraticinstitutions; fighting corruption and building social consensus onimportant issues to ensure broad-based success of macroeconomicpolicies.

Another important consideration to this discourse is the differencebetween policy and implementation, which can at least partly beviewed as the difference between developed and developingnations worldwide. The best policies come to naught unlessadequately executed, and the African continent provides a longlist of such examples. Obasanjo’s edict on entrepreneurial studiescould very well end up being the next one unless successivegovernments follow it through in both letter and spirit. Toaccomplish durable prosperity, Nigeria needs to exploit itstremendous economic potential with innovative governance,together with an ironclad shift against endemic corruption.Interventionist policies and institutional mismanagement arepotentially far more damaging in the long-term than, for example,the current economic crisis. A twofold agenda of reform andregulation, with effective implementation, is crucial to achievingthe entrepreneurial revolution that will help the Nigerian economyovercome its trouble legacy.

The world looks with envy at the unprecedented growth of Chinaand India. These two Asian giants were still in the landscape ofpre-industrial agricultural economy when Nigeria was alreadysetting up factories. Today they are enjoying the blessing of aborderless interconnected world economic order.

Nigeria needs to follow through on its significant economicpotential with sincere governance and effective planning, togetherwith an ironclad shift against endemic corruption. Interventionistpolicies and institutional mismanagement are potentially far moredamaging in the long-term than, for example, the current economiccrisis.

I think DStv isforgetting it is now acompetitive market,although those otherpay TV companiesare not as big butNigerians arebeginning to ratethem to be moreeffective, they evenhave moreentertainingprogrammes

L-R; Medical Director Highland Maternity Lagos State, Dr Imosemo Donald, HealthwiseProject Manager Mrs Fatima Adeoje, and Healthwise Producer Mrs Temitope Adesegunduring the healthwise Show held at Christ embassy Studio Oregun, Lagos.

CMYK

Vanguard, MONDAY, DECEMBER 9, 2013 — 19

Business & EconomyContinues from page 18

,,

Nigerians groan under Multichoice’s pay tv, —bemoan poor quality, high fees and lost signals

various customer fora,” shesaid.

Ms. Juliana Nnamdi, whosaid her husband is a yearlysubscriber, said that thehusband is in love with theDSTV brand, but isdisappointed with the wayhe’s been treated by thebrand, while pointing out thatsometimes, he is cut off beforethe subscription expires.

She said that her husband isconsidering dropping the ideaof the yearly subscription orrather look for an alternative.“We have not enjoyedanything from the DSTV brandsince we have beensubscribing to their platform.We hear about all manner ofpromotions and wonder how

the winners emerge. Thepromos look like a ruse.”

The near monopolistic natureof the pay TV marketspearheaded by DSTV hasbeen a thorn in the flesh ofNigerians, says Mr. AvuruAdunaka, who said thatNigerians are being milkedevery day and nothing is done.

A subscriber who does notwant his name in print lostsignal for two weeks, eventhough apologies were sent,he was not happy with thesituation but queried whetherMultichoice will make refunds

for the weeks lost.Accusing the Pay TV

provider of insensitivity toconsumer complaints andunreasonable deduction fromsubscribers, Olu Olajuwonexplained how he wasmigrated to a platform he didnot subscribe for and yet wasmade to pay for the service.

When contacted onsubscribers’ complaintsregarding the length of thescanning period of the DSTVdecoder, Segun Fayose, Head,Public Relations, MultichoiceNigeria, said that subscribers

have been advised severallyto buy an Uninterrupted PowerSupply (UPS) to support theirdecoder so that when there ispower outage or fluctuation,the decoder will pick upimmediately, “this is the onlyway subscribers will not loseimportant part of aprogramme.”

On scrambled pictures afteror during rain, he said that theproblem is peculiar with thetechnology used, but that thecompany is still working onthat.

Speaking about lost days,

Fayose advised that the bestway to avoid this situation isfor subscribers to makepayment before the expirationdate and that subscribersshould put on their decoderbefore making payment, asthis is the only way not to loseviewership.

He said that somesubscribers remove theirsmartcard when they want togo and make payment, an ideahe frowned at.

He that said when paymentis made, instead of calling the

to assist in the promotion ofindustrialisation. But theseinstitutions are either moribundor totally dead. FederalInstitute of Industrial Research,Oshodi (FIIRO), was set up toconduct research into productsthat can be manufacturedlocally. Where is it today?PRODA had the same mission;it is no longer heard of and itsproducts have never been takenseriously. What about the RawMaterials Research andDevelopment Council? Whereis the NASENI? By its mandateand scope of operation, it is theonly Nigerian purpose-builtagency designed to conductdevelopmental work in the areasof manufacturing, but whereare its end products?

This government must learnto be serious. The bid by theprevious governments forNigeria to take off industriallyled to the setting up of thevarious steel rolling mills acrossthe country. Where are therolling mills? What has becomeof the famous Ajeokuta Steelplant? Where in Nigeria is flatsteel being produced for thenation to tap into to producecars? If this government shouldgo into its own archive; it willfind that facts about theoperating capacity of Nigeria’sautomotive sector in the past arewell documented. The FederalGovernment in a bid to producea Nigerian car encouraged thesetting up of assembly plantsin various parts of the country.

The Assembly andComponent manufacturingplants in the 1970s and 1980speaked at a total of over 120,000cars, commercial vehicles andtractors, per annum. Eventoday, an entirely green plant,Innoson Vehicle MotorManufacturing (IVM) inAnambra State, is churning out

Auto policy, going round incircle and moving nowhere

Nigeria, unfortunately, is a country that runs on vicious circles. Whatbeats human imagination is the rate at which the nation’s leaders repeatthe same mistakes of the past. It was amazing when the Minister of Trade,

Investment and Industry, Dr. Olusegun Aganga, announced to the nation a newautomobile policy. It sounded as if the country has never had such policy in the past.

Nigeria has scattered across the country, various research institutes that were built

Light Commercial vehicles,Buses and Sport Utility Vehicles(SUVs).

The question is, who is toblame for the free for all importof vehicles into the country?Various governments in thecountry do not patronise locallymade products. They preferbullet-proof Mercedes Benz,BMW, alloyed wheeled Pradoetc. At a point, the military tookPeugeot as the official car for themilitary government, but assoon as the men in flowinggown came in, it was jettisoned.

The Nigerian automotiveindustry’s domestic productionbegan in the late 1970s throughpartnerships between theNigerian government andforeign companies. Sixassembly plants (two for carsand four for trucks) wereestablished between 1970 and1980. These were: PeugeotAutomobile Nigeria Limited(PAN) in Kaduna; Volkswagenof Nigeria Limited (VWON) inLagos; Anambra MotorManufacturing Limited

(ANAMMCO) in Emene,Enugu; Steyr Nigeria Limited(Bauchi); National TruckManufacturers (NTM) in Kanofor Fiat; and Leyland NigeriaLimited in Ibadan.

How many of thesecompanies are

producing at 10 percentinstalled capacity and why, isthe question we must ask. Thereasons are not far- fetched.

Apart from the fact that thebasic infrastructure are lacking,over time, modern cars

produced internationallybecame more popular withNigerians than the ‘post-war’cars produced nationally at thattime. Also, the industry ’sproblems were exacerbated bylack of economies of scale,disappearance of the middle-class, as well as weak importpolicies and enforcement. Thesubsequent devaluation of thenaira and increasing inflationresulted in high productioncosts at Nigeria’s inefficientplants.

The result is the import-dependent automotive industrywe know today, an industrywith an annual installedcapacity of about 100,000 carsthat is five percent utilised. Tomeet the demand gap, theaverage Nigerian is forced tobe import-dependent with 80percent of the automotiveimports being used cars.

Have we solved the problemsbedeviling the auto industry inNigeria to the point that Nigeriacan afford high duty onimported second-hand cars?The concern in the recentlyannounced auto policy of theFederal Government is that ithas a potential harmful effect onthe economy and the welfare ofNigerians because Nigeria’simport-dependency is just amanifestation of deeper issuesof low productivity, weakcompetitiveness and flawedforeign exchange policy in thedomestic economy.

Did this government do a costbenefit analysis of theimplication of the sharpincreases in the import tariff andlevies on motor vehicles on thewelfare of the people they wereelected to serve? To anyeconomist, it is inappropriate tobegin the pursuit for a self-reliant automobile sector withthe imposition of high importtariff on vehicles when there arefundamental supply side issuesto resolve. Without a goodfoundation, the superstructurecannot stand in any economy.

As with the case of rice policy,

the recent tariff review wouldlead to the escalation ofsmuggling of motor vehicles,shortages with correspondingloss of revenue to governmentand the attendant highertransportation costs. This willhave an inflationary impact onthe economy. This wouldhappen because over 85percent of the freight in theeconomy is moved by road; soalso is the movement of thecitizens. Vehicle ownership willgo beyond the reach of theNigerian middle class,especially in the face of poorcredit access and high lendingrates in the economy.

To any right thinkinggovernment, the creation of asustainable automobile industryshould be predicated on highlocal value addition andcapacity for backwardintegration, strong engineeringinfrastructure, especially theiron and steel industryincluding the production of flatsheets, foundries andfabrication of vehiclecomponents; strongpetrochemical industry tosupply the plastic componentsin vehicle production, and thedevelopment of ancillaryindustries for the production ofbatteries, glass, radiators, tyresetc. Can Nigeria in all honestysay these facilities are availablenow? Perhaps this governmentmay want to tell Nigerians whatit knows about the Oshogbomachine tools and what it wasset up to do and what hasbecome of it?

Mr. President and his ministermust come to terms with realityand stop populist ideas that leadthe country nowhere. Let usachieve at least 18 hours ofregular power supply beforedreaming of the impossible.


Have we solved theproblems bedeviling theauto industry in Nigeria tothe point that Nigeria canafford high duty on importedsecond-hand cars?

CMYK



BRIEFS

From left: President of the Institute of Chartered Accountants of Nigeria (ICAN), Alhaji KabirMohammed: Deputy Governor of Lagos State, Mrs. Adejoke Orelope-Adefulire and Mrs. OnomeOlaolu, Council Member and Honorary Treasurer, ICAN; during the investiture of Olaolu asthe chairperson of the Society of Women Accountants of Nigeria (SWAN).

Federal Inland Revenue Services(FIRS), has blamed the failure of some

businesses in the country on multipletaxation. Mr . Koffi Abassi, the Head, Microand Small Tax Payers Department, said thisat the 2013 National Revenue summitorganised by Centre for Economic Researchand Development.

The summit sought to explore ways toimprove revenue generation, allocation andmonitoring in the three tiers of government.He said that one of the factors contributingto multiple taxation was the contracting ofprivate agents by some states to collect taxeson commission basis.

Abassi said that though it could be arguedthat the practice had resulted in improvedebt recovery rate for some states, it howeverhad a negative effect on the economy.

He said that one of the negative effectswas the allegation of imposition of multiplecharges on innocent businesses.

“When you use tax contractors you virtuallyhave less control over their modus operandi.They are interested in using the means theyfeel expedient to get more commission evenwhen the method applied is wrong. Becauseof all these, the National Economic Council(NEC) made up of the 36 governors andformer heads of states among others recentlyresolved to abolish the use of tax contractors

Why some businesses fail — FIRS

Why entertainment industryis unable to access $200mAFDB fund

Business & Economy

The president of GaboskyFilms Inc, Gab Okoye,

has given insight into whystakeholders in theentertainment industry arefinding it difficult to access the$200 million AfricanDevelopment Bank (AfDB)facility.

The fund is being disbursedthrough the Bank of Industryto revamp and enhance thenation’s industrial andentertainment sectors.

However, Ibrahim Ahmed,Senior manager BoI,disclosed that over N2.5billion has been approvedand set aside for theentertainment sector and onlyN1 billion has been disbursedso far.

Speaking during the pre-launch press briefing of G-media, Okoye stated that BoIhas shown it readiness to helpstakeholders tackle thechallenges of theentertainment sector byfunding any innovativeprojects such as the G-mediaidea which is backed by N1.8billion from the bank.

According to him,stakeholders in the sector arenot producing bankableprojects to encourage thedevelopment bank releasefunds to them.

He observed that most of theideas being presented to thebank lacked in-depth research

and the requisite structure tobe profitably sustained.

“The issue of distributionhas often been identified asthe major problem ofNollywood, as enthusiasticaudiences across the worldare unable to get their handson the movies they love to

watch due to inadequatechannels which allowedpiracy to thrive at a globallyunprecedented 82 per cent.

“One of the results of thedistribution problems ofNollywood has been thewithdrawal of some of the besthands that gave the industry

its early success from movieproductions. When salesdropped drastically and lesscapable hands became theleaders of the industry, themajor producers and directorsthought it best to stay awayfrom the rot,” he said.

He appealed to theprofessionals to come back tothe sector and join handstogether in order to rebuildNollywood into a dynamicindustry once again with thepromise that G-Media willget their films to buyers on itsnew real-time auditable andsales verifiable platform.

“The first phase of the G-Media distribution project isset to commence in January2014 with 25 ultra-modernstores spread across thecountry, 30 regionaldistributors as well as 4000community distributionstores,” Okoye disclosed.

Continuing, Ahmed saidthe sector enjoys the fullsupport of the bank’smanaging director, EvelynOputu, who has set up aspecialized division mannedby dedicated professionals toattend to the needs ofstakeholders.

“The bank decided topartner with Gabosky becausewe see the entertainmentindustry as a business and weare ready to deal with all thatare ready to approach us inthat light. Our mission is totransform Nigerian industrialsector and integrate it into theglobal economy by providingfinancial and businesssupport services to existingand new industries to attainmodern capabilities,” he said.

in the country. This is because of theperceived burden on citizens due tomultiplicity of taxes imposed by these taxcontractors,” he said. Abassi advised statesthat want to use tax contractors to onlyengage them to play advisory roles.

He said that they could be also engaged incapacity building and education of the informalsector on the importance of paying tax.Mr Omar Hambagda, former Chairman,Senate Committee on Ethics, Code of Conductand Privileges said the legislature’s mostimportant role was its function in budgetaryallocations. Hambagda in a paper on the roleof the legislature in appropriating funds forgovernment use said that legislative controlof the country’s finances was meant to curbthe excesses of the executive.

“The legislature has the final say inappropriating funds as they represent thepeople, therefore, better equipped to directresources to areas that are most beneficial tothem. “The legislature can approve or rejectout rightly, any demand for appropriation offunds, or accept it with modification andamendments when it deems it necessary,”he said.

Participants were drawn from State Housesof Assembles, Local Governments Councils,States and Local Government Boards ofInternal Revenue Service, among others.

By FRANKLIN ALLI

PZ repackages ZIP,unveils new TVC

The newly reformulatedZIP detergent from the

stable of PZ Cussons has hit themarket with a new televisioncommercial. The MarketingDirector Family Care SBU of PZCussons at a press briefing inLagos, said the reformulationis aimed at delivering the bestwhites to Nigerians, thecompany also reinstated its commitment to innovation anda delightful washingexperience for Nigerianconsumers.

Speaking at the unveiling, theMarketing Director, FamilyCare, PZ Cussons Nigeria Plc,Ms. Sandy Griffiths said thecompany’s business initiative,hinged on consumersatisfaction is the driving forcein its quest at meetingconsumer expectations.

‘Zip as a brand has evolvedthrough the years with a clearcommitment to deliver whiterwhite and brighter clothes,thereby helping consumers puttheir best foot forward,’ shestated.

According to her, the newimproved Zip detergent and introduction of the lemonvariant, will give consumersmore impetus to be proud ofthemselves and their families.

Panasonic unveilsfirst Nollywoodsmart TV

Panasonic has unveiledthe world’s First

Nollywood Smart TV App -iROKO TV In Nigeria for itsSmart Viera TV brand.

The new iROKOtv App isdesigned to provide PanasonicSmart VIERA TV users with acatalogue of 5000+ Nollywoodmovies. iROKOtv has beendubbed as the ‘Netflix ofAfrica as it is one of the firstVOD platforms in thecontinent.

iROKOtv app hasapproximately 1Mn uniquesvisiting the site every monthfrom 178 countries around theworld.

The special feature of theapp disables geo-lock facilityenabling easy access to contentfrom anywhere in the world.iROKOtv users can watchtheir preferred content fromanywhere across the globe.

iROKOtv app operates afreemium model; 95 percent ofthe site is free to watch.However, there is also anoption for subscription servicecalled iROKOtv Plus where for$5 (N800) a month, users arethe first to access brand newNollywood movies andiROKOtv app releases 3 newmovies every single week.


Business & Economy

BRIEF

From left: Immediate Past President of Nigerian Association of Chamber of Commerce, Industry,Mines and Agriculture (NACCIMA), Dr. Herbert Ajayi; National Vice President, Alhaji SanusiMaijama and Executive Committee Member, Prince Emeka Ayabazu during the National Sen-sitisation/Investors' Forum on proposed Sealink Project organized by NACCIMA in Lagos.

The Standard Organisation ofNigeria, SON, has tightenedits surveillance on importersof fake and substandardproducts in order to rid thenation’s markets of poorquality goods.

The Director-General ofSON, Dr. Joseph Odumodusaid the organisation hasbeen keping a close watch onimporters of fake andsubstandard to curb themenace, adding that theagency recently staged asensitisation programme inAbuja, Onitsha and Abato effectively tackle themenace of substandardgoods.

He also said that theagency had also entered intopartnership with traders inmajor markets to enhanceinformation about theactivities of the importers ofthe fake and substandardgoods

“The time for fighting hasgone; it is t ime forcollaboration and discussionthat is why we invited therepresentatives andexecutives of marketersassociation in Abuja andother related stakeholdersthat will help us do thiswork, because SON cannotdo this alone, it needs thecooperation and assistanceof the marketers that areselling these goods toprotect Nigerians and yourown relatives from the importof these substandard productin our country.

“We have gone to majormarkets in Nigeria to preachthis philosophy to engagingtraders to d He explainedthat patronage of Nigeriamade goods would ensurethat any sub-standardproducts manufactured inthe country could easily betraced by the organisationand the manufacturerpunished o the right thingand we will go to Lagossoon”.

He added that he hadengaged stakeholders inFCT on a number ofoccasions to ensure that theterritory was free of sub-standard goods.

“SON has passed the eraof seizing traders’ goods andburning them,” he said.

He implored Nigerians topatronise home-made goods“so that if you have anycomplain we will be able totrace the manufacturer, but

SON tightens surveillance onimporters of substandard productsBy FAVOUR NNABUGWU when you keep buying goods

that are made abroad andwhen there is complains, it

becomes very difficult totrace the manufacturer andcut the thing at the root. So

patronise our people that aretrying to create jobs for ourchildren,” he urged..

Indulge Nigeria Ltd has been boostingproductivity at work places through its

wellness advocacy, Feel Good Festival andAward for the past eleven years.

Every year, the company’s event attractsparticipants from local firms like PopularFoods; Promasidor and Nigerian BreweriesPLC. Others are Unilever, Grand CerealsLtd, UAC Foods, Gossy, Mr. Biggs,Nutricima Nigeria Ltd and PZ Cussons, ChiLimited, etc.

Dr. Bisi Abiola, managing director IndulgeNigeria Ltd, disclosed this in a review ofthe company’s operation for the outgoingyear and outlook for 2014.

“2013 was a challenging year for mostbusinesses, however just like anyentrepreneur’s survival instinct, it is aboutstrategic planning, and execution, bycutting off non-essentials and focusing onpriorities, most importantly focusing on theIndulge brand intrinsic worth - which iswellness entrenched - and nothing more,”she said.

According to her, the company has madegiant efforts towards actualising her visionthrough series of activities andproducts that promotes wellness in theworkplace and encouraging family qualitytime together through the ‘Feel GoodFestival.’

“All our activities and products havedefinite tangible impact on, not just workers

Indulge boosting productivity atwork places — Bisi AbiolaBy FRANKLIN ALLI but also, all categories of people cutting

across ages and socio- economic status,“Indulge vision is healthy lifestyle for all

by 2020, hence its strategies encompassesdissemination of health and fitnessinformation to people, advocacy for a healthylifestyle, and highlighting the importance ofa healthy lifestyle to preventive care, whichcarries minimal cost when compared to thehigh cost of the curative alternative,” shestated.

She recalled that this year’s edition of theseminar provided an enabling environmentthat unleashes the ‘feel good’ experience onparticipants.

“After the opening words from Dr. FemiOlugbile, Permanent Secretary, Lagos StateMinistry of Health and Dr. Bolaji Adebiyi,Medical Director/CEO, Alimosho Generalhospital’s presentation on ‘Cancer of theBreast: Prevention Tips’, there was no roomfor boredom through the highly interactiveexperience sharing on stress management,dancing, aerobics and balloon poppingactivity,” she said.

“The ‘Feel Good Festival’ at the JhalobiaGardens, Airport road, providedopportunity for families to have qualitytime together and seize the opportunity forfree medical checks.

“It was a day of exciting and pulsatingaerobic music which got several peoplemoving to different physical exercisefootsteps, whereas others engaged in sportsactivities like football, skipping, and tabletennis,” she stated.

Private sector engagementhas been described as

crucial to the eradication ofunemployment in Nigeria andkey to the success of GraduateInternship Scheme (GIS).

These were the words of Dr.Christopher Kolade, Chairmanof SURE-P Committee, whowas represented by ProfessorKunle Wahab, member of theSURE-P Commilt.ee at theworkshop organised by SubsidyReinvestment andEmpowerment Programme,SURE-P on its GraduateInternship scheme, GIS, tosensitise Nigerians on theactivities of the programme.

The workshop, which was thefirst in a series of four, wasorganised to sensitise theprivate sector on the GIScampaign to attracted firms,organisations, the civil societyand Non GovernmentalOrganisations, NGOs.

Kolade said that the privatesector as the engine room ofeconomic development aridnational manpower it has acrucial role to play inaddressing the problem ofgraduate unemployment inNigeria, “this is a key issuewhich firms and otherorganizations should see as acorporate social responsibility:they should therefore registerwith the scheme arid takeinterns, as well as mobilizeother firms to do the same.’

He described the GIS as apublic private partnership(PPP) in which FederalGovernment under PresidentGoodluck Jonathan providesthe platform and resourceswhile the private sectorprovides the training andskills so that the unemployedgraduates can acquire what isrequired to get decent jobsafter the one-year internship.

He however charged thefirms to see their support forthe scheme not only as apartnership, but a cleardemonstration of corporatesocial responsibility. Heaverred that graduates are notas unemployable as is beingpain led as many interns arcbeing disengaged by firms torimmediate employment.

Besides, he said: ‘“theinterns are meant to bernentored by their employersas they have no workingexperience, as such, theyshould not be expected to behands-on.

Private sector keyto eradicatingunemployment— Dr. Kolade

By PRINCEWILLEKWUJURU


Banking & Finance

BRIEFDiamond Bankpartners Lagosto train artisanson financialliteracy

From left, Executive Secretary/ CEO, Financial Reporting Council, Mr. Jim Obazee, GroupMnaging Director/ CEO, Zenith Bank Plc, Mr. Godwin Emefiele and Secretary to Akwa IbomState Government, Mr. Udom Emmanuel during the 10th Annual Financial Corporate FinancialReporting Forum held at Sheraton Hotels on Thursday.

Mobile Money: Growing amidstdebate over methodology

BY BABAJIDEKOMOLAFE

BY JONAHNWOKPOKU

As part of its CorporateSocial Responsibility

initiatives, Diamond BankNigeria Plc has trainedover 500 people onfinancial literacy in Lagos.

Speaking to Vanguard onthe initiative, DiamondBank’s Head of CorporateCommunications, Mrs.Ayona Trimnel said that thetraining is in partnershipwith the Lagos StateGovernment and that thebeneficiaries come fromartisans training at the 18Skills Acquisition Centresbuilt by the state.

She explained that thebank has so far visited theSkills Acquisition Centresin Surulere, Lagos Island,Mushin, and Anthonyvillage training over 500artisans on financialliteracy

Further speaking on whatinspired the move, Trimnelsaid, “When we werelooking at CRS initiativewe really wanted it to besomething that will beimpactful. We wanted tosomething that would bemeaningful that we will doin the community in whichwe serve. We wanted toadd value.

“This is because;whatever CSR initiative weare doing has to be in thoseareas that would bemeaningful, something togive back to the society. Sowe asked ourselves; howdo we impact the youths inLagos? So we went toLagos State governmentwho said they have 18 SkillsAcquisition Centres andyoung people who arethere, learn differentvocational skills inCarpentry, ComputerProgrammes, HairDressing, Fashion andDesign, Barbing and webegan to think of how wecan add value to that.

“Now even if theyacquire these skills, theycannot start businesswithout money, so westarted asking for how wecould come in to teachthem how they can accessfinance for their businessand the basics ofinvestments.

Nigerians are increasingpatronising money

services to make payment andaccess financial services,despite debate over themethodology adopted by theCentral Bank of Nigeria(CBN).

In 2009, as part of efforts topromote electronic paymentthe CBN introduced themobile payment framework.The framework is to guide thebusiness of mobile money,which is the use of mobilephones for payment and toaccess financial services.

Thereafter, the apex bankissued mobile money licensesto 16 firms/consortia namelyStanbic IBTC Bank Plc,Ecobank Nigeria Plc, andFortis MFB. Others are UBA/Afripay, GuarantyTrust BankPlc/MTN and First Bank ofNigeria Plc, Pagatech,Paycom, M-Kudi, Chams,Eartholeum, E-Tranzact,Parkway, Monitise, FET andCorporeti.

The framework howeverrestricted the participation ofmobile network operators(MNOs/Telcos) to provision ofinfrastructure to banks orlicensed mobile paymentoperators. Specifically, theframework banned Telcos fromreceiving deposits from thepublic except in the respect ofprepaid air time time billingof their subscribers. It alsodisallowed the use of theprepaid airtime value loadedby their subscribers for thepurpose of payment or totransfer monetary value. Thisrestriction has been faulted bysome financial experts andthe Telcos as well. “It is wrongto prohibit MNOs, a keystakeholder with significantresources and nationaloutreach, from directlyparticipating in the mobilemoney sector”, said RobinHofmeister, a paymentspecialist with the WorldBank. Addressing a gatheringof electronic payment expertsrecently, he recommendedthat the CBN should revisethe 2009 regulatory frameworkfor mobile payment services tolevel the playing field andintensify competition,particularly by allowingMNOs to be licensed asmobile payment systemoperators (MPSOs).

Prior to thisrecommendation, TundeKuponiyi, Director, TeleBanking, Globacom, hadmade a case for increasedparticipation of Telcos inmobile money services. Hesaid mobile money is atelecommunication-drivenretail network, hence the needfor a bigger chunk of the

business for the telecomfirms.

Emmanuel Obaigbona,Deputy Director/Head,Payments System BankingOperations Department,CBN, however defended thedecision of the apex bank.Speaking at a mobilepayments services regulatoryframework disseminationworkshop, he said, “therestriction among otherthings is to ensure that largernetworks are not givenundue advantage based ontheir wide coverage herebyexcluding other paymentsservice providers from accessto their customers. It is alsoto ensure that all mobilepayment traffic are givenequal priority duringtransmission by the Telcoswithout prejudice to their

Tayo Oviasu, Chief ExecutiveOfficer and Founder of thecompany, said, “Sinceinception two years ago, Pagahas processed 4.4 milliontransactions worth over N47billion, with a 33 per centactive user rate, which ishigher than industry norm. Paga recorded 874 per centgrowth in number of usersfrom 40, 354 to 381,972, andas at now it has recorded 162per cent growth in 2013, toover one million. Presently 12people make transactions onPaga every minute. Thisachievement, he said, makesPaga the fastest growingmobile payments company inthe country and indeedAfrica.

Established in 2009 withproducts targeted at the

confirms the significantgrowth prospects for mobilepayments in Nigeria and thecountry’s willingness to key into convenience that platformslike Paga provide. We areproud of the achievement butbuilding sheer numbers hasnever been Paga’s goal. Ourgoals are to bring efficientpayment systems to allNigerians, banked orunbanked, and deliver lowcost banking services to themass market. Through ouragent network, Paga willcontinue to educate andempower communities acrossthe country by providingconvenient access to financialservices. “

A similar sentiment wasexpressed by the

umbrella body of licensedmobile payment operators, theAssociation of LicensedMobile Payment Operators(ALMPO). Chairman of theAssociation, Dara Owolabi,noted, “In an industry that isstruggling to find its footing,Paga’s achievement iswelcomed news with optimismfor the future of mobilepayments.”

He concluded with a subtlereply to the critics of theframework adopted by theCBN. “The topic of mobilepayment adoption in Nigeriatends to elicit a somewhatmixed reaction of real-lifeapplication but we are happyto see the numbers starting topaint a very different picture.More and more service isbeing validated by growingindustry figures, proving thatthe bank led model chosen bythe CBN is working and is thebest way forward for Nigeria.It also shows that Nigeriansare ready and eager to adoptnew payment channels.”

The topic of mobile payment adoptionin Nigeria tends to elicit a somewhatmixed reaction of real-life applicationbut we are happy to see the numbersstarting to paint a very different picture.

, ,critical needs of Nigeria’sgrowing cashless economy,the company’s growth wasachieved with constantproduct innovation, a rapidgrowing team spread acrossthe country, over 800merchants, and over 3,500agents in 150 cities in 25 statesnationwide.

According to Jay Alabraba,Co-Founder of Paga, Thecompany’s growth is a vote ofconfidence for the mobilemoney framework adopted bythe CBN. He said, “Paga’sreaching one million users isa noteworthy achievement notjust for Paga but for the entireindustry and the CBN, whosefinancial inclusion andcashless economy vision wewholeheartedly support. It

own consumer generatedtraffic.

Nigerians howeverseems to be more

interested in the convenienceand comfort of using theirmobile phones to conducttransactions than the debateover the restrictions of telcos.A testimony to this wasunveiled by Paga, one of thecompanies licensed by theCBN to render mobile moneyservices.

Last month the companyannounced the achievementof one million users on itsmobile payment platform, thefirst by any mobile paymentcompany in the country.

Providing more insightsinto the growing adoption ofmobile money by Nigerians,


Corporate Finance

BRIEFS

CMYK

From left: Corporate Affairs Adviser, Nigerian Breweries Plc, Mr. Kufre Ekanem; GUS 10Winner, Mr. Dennis Okike, receiving a gift from His Excellency Theodore. A Orji, Governor ofAbia State during the official visit to present Dennis Okike to the governor at the GovernmentHouse, Umuahia.

The shares of companiesin the category of Fast

Moving Consumer Goods,FMCG, listed on theNigerian Stock Exchange,NSE, are presently overpriced, said the ManagingDirector/CEO, FinancialDerivatives CompanyLimited, FDC.

He made the remark whilepresenting a paper, “2014-The Year of Gathering Storm”,at the December edition ofLagos Business SchoolBreakfast meeting.

Some of the consumergoods stocks on the official listof the NSE include: UACN,which closed transaction as atThursday, December 5, 2013at N63.75 per share. FlourMills of Nigeria Plc tradesN91.80; Northern NigeriaFlour Mill, NNFM, N24.37;Cadbury Nigeria Plc, N62.30per share; PZ CussonsNigeria Plc, N37.50;Unilever, N60.56; and NestleNigeria Plc with the highestshare price of N1,200 pershare.

Some others are DangoteFlourmill, N9.35; DangoteSugar, N11.07; UTC, N0.67;and Honeywell Flourmuill,which trades at N3.02 pershare.

Giving further breakdown,he said that consumer goodsdominated activity on theNigerian Stock Exchange,accounting for over 31percent of total transaction inthe market, followed closely

Shares of fast movingconsumer goods’ firms overpriced — FDCBy NKIRUKA NNOROM

by the financial servicessector, which account forabout 30 percent of marketcapitalisation, while theindustrial goods sector has asignificant weighting in theNSE led by Dangote Cement.

According to him, at a price/earning ration of 13.60percent, the Nigerian capitalmarket has the propensity ofattracting more foreigninvestors’ patronage, as it is

cheaper relative to otherregional and internationalmarkets.

Presently, the price earningratio of S&P 500 (USA) standsat 16.91 percent; Nairobisecurities Exchange, NSE,(Nairobi) stands at 14.75percent, while that ofJohannesburg StockExchange, JES, stands at19.26 percent.

He affirmed that the rally

recorded so far in the equitiesmarket will continue into thefirst quarter of 2014 ‘before thefizzle of the sizzle.’

The FDC boss also statedthat the market is graduallystriking a balance intransaction, as it almost evenlydistributed between domesticand foreign investors.

He noted that foreignportfolio investments, FPI,transactions accounted for52.3 percent of totaltransactions in August. Itstood at 36.9 percent inJanuary and peaked at 64.48percent in April.

Globally, he said that theequities market have shownsignificant growth, since theirquarter one (Q1) 2009 troughwith the Nigerian StockExchange’s All share Index,NSE ASI, increasing by 96percent from 2009 quarter onelow.

“The NSE ASI has increased38.6 percent for the year. Nowat 38,920.85 basis pointscompared with 28,078.81 basispoints at the end of 2012, thebourse grew 6.38 percentquarter-to-date, QTD.

“Some have reached all-timehighs. Dow Jones breaches16,000 reaching an all-timehigh in 2013; S&P 500 alsoincreases to pass the 1,800mark for the first time; TheMSCI Frontier markets indexhas increased 18.86 percentyear-to-date; FTSE 100approached pre-crisis level of6730.71 in 2013,” heexplained. He, however, saidthat the market is yet torecover from the 2008 crash,adding that it needs toincrease by further 60 percentto realise its pre-crash peak.

Honeywell Flour Mills Plc has disclosedplans to build a 63-hectre industrial estatethat will house milling and pasta factoriesin Nigeria, even as it invests about N10billion in two newly constructed millingfactories to boost flour production.

The Executive Vice Chairman/CEO,Babatunde Odunayo, who made thisdisclosure while on tour of the newlyconstructed milling plants, said the plantwas to help increase the production of flourin the country.

He also added that the project will supportthe Minister of Agriculture, Dr. AkinwunmiAdesina’s resolve to make flour available forNigerians.

According to him, “We are ready to increasesupply of flour. We will not increase pricesof our products because of the new machinesthat costs us about N10 billion to put in place.”

Continuing, he stated, “We want to showto Nigerians what we have been able toachieve. What we are saying in addition isthat this company is an indigenous companywith Nigerians at the helm of affairs. This iswhat we have achieved, the company hasmoved from a 100 percent family business

Honeywell invests N10bn in new milling plants

By PRINCEWILL EKWUJURU since 2009 to a quoted company. This is aclear example of an indigenous businessgrowing at a geometric dimension.”

Calvin Grieder, Chief Executive Officer ofBuhler, a Switzerland company and buildersof the milling plants, while commenting onthe plants said that Honeywell did notcompromise in the construction of the plants,and was emphatic that Nigerians should beassured that they have good millingfactories in the new mills.

According to him, “This is not done forquick returns for Nigerians, but quality andassurance. It is a stateof- the –art and amaster piece to behold. We are proud to beassociated with Honeywell. This is aNigerian company, run by Nigerians.”

While advising the management ofHoneywell, Grieder said: “The bestHoneywell should d o is train the peoplebecause there should be harmony betweenthe people and the machine.”

Commending the efforts of themanagement of Honeywell, Chairman of theAssociation of Master Bakers and Caterersof Nigeria, Lagos Chapter, represented bythe Vice Chairman, Mr. Philip Ogunjobi,pleaded with the company not to increasethe price of their products.

China bans financialcompanies fromBitcoin transactions

China’s central bank hasbarred financial

institutions from handlingBitcoin transactions, moving toregulate the virtual currencyafter an 89-fold jump in its valuesparked a surge of investorinterest in the country.

Bitcoin plunged more than20 percent to below $1,000 onthe BitStamp Internetexchange after the People’sBank of China said it isn’t acurrency with “real meaning”and doesn’t have the same legalstatus. The public is free toparticipate in Internettransactions provided they takeon the risk themselves, it said.

The ban reflects concern aboutthe risk the digital currency maypose to China’s capital controlsand financial stability after asurge in trading this year madethe country the world’s biggesttrader of Bitcoin, according toexchange operator BTC China.Bitcoin’s price jumped morethan ninefold in the past twomonths alone, prompting formerFederal Reserve ChairmanAlan Greenspan to call it a“bubble.”

“The concern is that itinterferes with normal monetarypolicy operation,” said HaoHong, head of China researchat Bocom InternationalHoldings Co. in Hong Kong.

U.S. stocks declineas economic datafuel stimulus bets

U.S. stocks declined a fifthday, after improving

economic data boosted bets theFederal Reserve will curb itsmonthly bond purchasessooner than estimated.

Microsoft Corp. fell 3.6percent after comments from aFord Motor Co. directorindicated Chief ExecutiveOfficer Alan Mulally wouldnot take over Microsoft’s topjob. Safeway Inc. slid 3.3percent after Jana PartnersLLC cut its stake in thesupermarket chain. Apple Inc.rose 1.3 percent as ChinaMobile Ltd. moved closer tooffering its 759 millionsubscribers iPhones.

The Standard & Poor’s 500Index (SPX) fell 0.2 percent to1,788.60 at 12:39 p.m. in NewYork. The gauge has retreated1 percent in the past fivesessions for its longest slumpsince September. The DowJones Industrial Averagedropped 31.60 points, or 0.2percent, to 15,858.17. Tradingin S&P 500 stocks was 4percent above the 30-dayaverage at this time of day.

CMYK


Corporate Finance

The Securities andExchange Commission,

SEC, said that foreignersinvested about $5.4 billion inNigerian bonds. Thisrepresents a growth of 350per cent from $1.2 billionrecorded in September 2012.

The commission also said

Foreign investors commit $5.4bnon domestic bond — SEC

Stories byPETER EGWUATU

the Nigerian economy hasdone better growing by 6.81per cent in the third quarterof the year from 6.18 per centin the corresponding periodof 2012.

Director General, SEC,Ms. Arunma Oteh, whodisclosed this during the justconcluded third CapitaMarket Committee, CMCsaid “2013 has been atransition year showing a

mixed picture of the globaleconomy.

While the first half of theyear raised concerns on thefragility of global growthwith what the InternationalMonetary Fund (IMF) calls‘3-Speed growth’, thesecond half is raising hopesof the return of growth asadvanced economies aregradually strengthening,despite the slowdown of

certain emerging markets.The IMF’s latest outlook

expects the world economyto grow by 2.9 per cent in2013 and accelerate to 3.6per cent growth rate in 2014.Sub-Saharan Africacontinues its impressivegrowth expected to besustained at 5.3 per cent in2013.” Continuing, she said“Domestically, the Nigerianeconomy has done better as

SHAREHOLDERS have beenencouraged to diversify their

investment in the capital market for furtherwealth creation.

National Coordinator, IndependentShareholders Association of Nigeria (ISAN),Sir Sunny Nwosu, who gave the advice toits members at the 2013 Triennial DelegatesConference held in Lagos said “Thoughrecent investment policy in the Nigeriancapital have alienated shareholders and hasgradually turned portfolio investment intoan elastic club there is still ampleopportunities for the retail investors if theycould diversify their investment. As apressure group, we will continue to challengethe government and regulators to create aninvestment level playing ground that willrecognize local investors to building a virilecapital market.

Continuing, he said “We subscribe to aninternalized market and a well managedcapital market that will help in transformingthe economy.” Speaking at the event, thechairman of the occasion, Prof. Wale Omole,former Vice Chancellor, Obafemi AwolowoUniversity, OAU, commended the ISAN andits National Coordinator, Sir Nwosu fororganizing the triennial conference toeducate its members on the activities of thecapital market and the economy in general.

According to him “This year’s conferenceis really apt as it focuses on post globalrecession era and the challenges andopportunities. So I commend ISAN leadersfor ensuring that shareholders are protected,educated and involved in contributing to thedevelopment of the economy.”

Shareholderscharged to diversifyinvestment forwealth creation

r e c e n t l yr e l e a s e dfigures fromthe NationalBureau ofS t a t i s t i c s(NBS) showthat oure c o n o m yaccelerated to6.81 per cent inQ3 2013 from6.18 per cent inthe previousquarter.

Meanwhile, the economycontinues to enjoy a stablemacroeconomic environmentwith inflation contained insingle digits since thebeginning of the year(currently at 7.8 per centyear-on-year) while theNaira’s foreign exchangevalue has remained largelystable at an average ofN157.31 to the U.S. dollar.

The economy’s positiveoutlook and macroeconomicstability have undoubtedlyattracted significant inflowsthereby supporting thecurrent rally in our market.

”Commenting on the stateof Nigerian bond market,she said” In April 2013 ourdomestic bond market got ahuge boost following theinclusion of Nigeria’ssovereign bonds in Barclay’sEmerging Market BondIndex in addition to itsadmission into the JPMorgan local currency bondindex in October 2012. Thishas put our local currencybond market within the radarof foreign investors whoyear-to-date, have investedan estimated $5.4 billion.”

26 —Vanguard, MONDAY, DECEMBER 9, 2013

CMYK


CMYK

Commodity Index Cover Story

Nov 29 - Dec 5, 2013

customer care, the subscribers shouldsend an SMS to a code, he advised.

Complaints trailed GOtv, alsoowned by Multichoice. Thecomplaints started pouring somemonths after it was launched andbefore Nigerians hardly enjoyed itsservices.

In defense of GOtv, the PublicRelations Manager for GOtv, EfeObioma, agreed that during thementioned days, the company hadserious challenge with transmissionglitch, but said: “The loss of somechannels in Lagos has been as aresult of conflict in signal distributionwhich was caused by third partyinterference. We are urgently workingon a technical solution to remedy thisproblem. Some GOtv channels arestill available; however, it isdependent on where the subscribersare located.”

Exset, pioneers of TV ecosystemsfor emerging markets, revealed thatits unique digital broadcast ecosystem- Digital Monetization System -DMS,will provide the ideal solution to sub-Saharan Africa ‘s digital broadcastinggrowth among those who cannotafford premium subscription services.

While speaking at the DigitalBroadcasting Summit and Expo inArusha, Tanzania hosted by theSouthern African BroadcastingAssociation and BSP Media Group,Andrew Pons, Exset’s Director ofMarketing, said the company willbe exploring DMS and the multi-faceted benefits that it brings toemerging markets.

“Exset understands that pay-TVneeds a new monetisation model foremerging markets in order tosucceed. That is why it created DMS,

a unique business and technologymodel that makes pay-TV self-financing without spendingexclusively on subscriber fees forrevenue,” Pons said. According tohim, DMS bridges the gapbetween technology supply andvalue-added service creation,facilitating digital televisionplatforms that can be monetisedwhere previously virtuallyimpossible.

He went on to say that thisallows subscribers to benefit fromnew information and entertainmentservices. “Partnering with Exset,monetised digital switchover willassist in bringing about socialtransformation”, he said. Bydeploying DMS, a very lowsubscription model of a few dollarsa month can be charged for thedigital television service, withadditional operator income gainedthrough selling the interactive TVspace to governments (for healthand education informationdissemination), magazines, localservice providers, teleshopping –the list goes on.

Rahul Nehra, Global Head ofSales and Marketing at Exset,said, “There’s a combination ofissues in sub-Saharan Africacountries that have held up the rollout of digital TV services to vastswathes of the population. Thedigital divide is thereforeincreasing with governmentscoming under pressure from avariety of international bodies totackle this. The TV set is the idealway to allow people to access new,exciting services at a cost they canafford via digital broadcastinfrastructure that are practical todeploy.”

BY GABRIEL EWEPU

THE Federalgovernment attributes the

reduction in inflation rate in 2013 toenormous food production by farmersacross the country through sustainedfinancing in the agricultural sector.

This was disclosed by the Ministerof Agriculture and RuralDevelopment, Dr. Akinwumi Adesinaat a meeting between the ministry,Central Bank of Nigeria, CBN, andsome banks’ executives.

Adesina said the performance byfarmers in the sector had keptinflation at a lower rate following theproper utilisation of loans accessedfrom banks to boost their activities. Hecommended the effort of the CBN andbanks that were committed to actualisethe Agricultural TransformationAgenda, ATA, by lending massivelyto farmers.

Adesina said: “Inflation is comingdown in Nigeria for the first time since2008 and that is a remarkable thing.This is happening because theCentral Bank Nigeria, CBN, is doinga fantastic job in terms of monetarypolicy and the fact that agriculture isactually expanding in this country.“When the inflation figures were

Nigerians groan under Multichoice’s pay tv

Food production crashesinflation in 2013—FG

released by the Director-General,National Bureau of Statistics, Dr. YemiKale, is on the decline. Inflationlargely is also attributable to the slowrate in the increase of food prices, therecent harvest continue to contain foodprices.

“That is to say farm harvest is alsodoing wonders. So basically you getCBN and agriculture working, andthat is why you are finding thatinflation is going down as fast as itis, and is the fastest rate since 2008.

“The total amount lent to farmersthis year 2013 was N20billion asagainst N3.5billion in the precedingyear, this expression of confidence inthe farmers came as a result of creationof institutional structures in form ofvalue chains which have done somuch to create and sustain confidenceto fix the value chains, will continueto reduce the risk of lending by banksto agric sector.”

The banks who had been providingloan includes Access Bank, DiamondBank, Enterprise Bank, First CityMonument Bank, Jaiz Bank, FirstBank and Mainstreet Bank. Othersare Sterling Bank, United Bank Africa,Unity Bank, Wema Bank, ZenithBank, Union Bank and Bank ofAgriculture.

Continues from page 19


CMYK


Micro-Finance

Interest rate is notthe biggest problemof SMEs

being pumped to BBC’s to sellto people who where not doinglegitimate transactions, if youare a politician and you wantto pay N200 to the dollar, amnot going to make the dollarcheap for you, but a genuinebusiness that establishes anoutfit, to import goods andservices goes and buy at interbank rate and it is 158, 59.

You have to keep a stablecurrency at the time whencurrencies are crashing becauseyou have inflation today.

Before I became governor, therate of inflation was 15.6percent, today it is 7.8 percent.You borrow money, but there area 100 million Nigerians morewho do not know the way to abank. For these people whohave no social safety net,bringing down inflation, affectstheir lives, they don’t want togo the market on their smallsalary and find that next monththey cannot feed their family.

I have to keep inflation downfor these people, I have to keepa stable interest rate for you topay the school fees of thosechildren, you don’t want to payschool fees at N100, and nexttime is N200. I have to buildup the reserve of this country,so that if there is an all priceshock, the country can continuegoing and the debt can be paid.

The high interest rate is theprice you pay for this. To talkabout the price of interest, is anargument in finance andbusiness is not an argument ineconomics. The low interest rateitself is not a problem, I candeliver it, you want low interestrate, I can give it to you, butwhere do you want inflation, 15percent, exchange rate 180,190, is simple. The way interestrates are going to come down

LAST week, Women in Successful Carrier (WISCAR) hostedthe Governor of the Central Bank of Nigeria (CBN) Mallam

Lamido Sanusi as keynote speaker during their 5th anniversarycelebration with the theme: ‘Unlocking the full potential of womenin the Nigerian Economy.’

Here were his responses to questions on Small MediumEnterprises and gender, filed by the discussants (Mrs. AdenikeOgunlesi, Founder, Ruff n Tumble; Mrs. Ayo Obe, LegalPractitioner and partner Ogunsola Shonibare and Chief ExecutiveOfficer, Stanbic IBTC Holdings Plc, Mrs. Sola David-Borha).

EXCERPT:

Most of the world businesses are SMEs. America was built onsmall businesses; they are the engine of real growth, but inNigeria, interest rate is killing small businesses. How are youaddressing this?

I agree with you. The interest rate can not be looked at inisolation. The argument has to be an economic argument; economicargument says, “What are the alternatives?” I always tell peoplethat delivering low interest rate is the easiest thing for a centralbank to do. If I print enough money today, interest rate will comedown to three percent, but what will the rate of inflation be, whatwill the exchange rate be?

Recently, I have been criticized, but at the time I glanced on the50 percent Cash Reserve Requirement, CRR, on public sector,the Indian rupee lost 20 percent of its value; South Africa randlost 16 percent of its value, Ghanaian cedi lost 15 percent of itsvalue; Indonesia rupiah lost 18 percent of its value, the Brazilianreal lost 12 percent of its value, while the Nigeria Naira lost only2.3 percent. Where would you have been if the Naira had becomeN190.00 to the dollar over night? You go to bank and get it atN158 and the banking system is if you buy from other marketer,which is a different matter; if you are a genuine business person,you don’t get it at less than N158 and that is inter bank rate.

The reason with 173 is because there was so much cash dollars

,

,

are two ways, first, the bankingindustry; I have said before,the industry as a whole is amonopoly, if you want financein this country, you don’t havea venture capital fund, youdon’t have a PE fund, thecapital market is not giving itto you, you got $25 billion inpension money that is not goingto infrastructure, everybodyfrom the power plant, to theconstruction company,Mortgage, everybody is goingto the bank.

Once you have amonopoly you have a

monopoly price, you’ve got tocreate competition for the bankand the only way to create thatcompetition is to build a properfinancial market where pensionfunds are players, insurancecompanies are players, wherePE fund are players, venturecapital funds are players, thenpeople knows where to go.

Second problem, why youcomplain of interest rate, it isnot the biggest of your problem.If you look at the cost structureof SMEs doing production,power, security, if you want toset up a textile firm today, youare your own power plant, yourown security company, you mayhave to build your own road,

by the time you borrow fromthe bank, you are not borrowingto buy machines or to buyinventory, you are borrowing tobuy a power plant and that isenough trouble. If you haveelectricity, security, good road,well trained staff that will giveyou value for money, you willpay 26 percent and beprofitable. Every time we focuson interest rate we forgot thepoint, the point is that we arenot doing development, it is therole of the state to provideelectricity, security.

The CBN has used its balancesheet in a way that isunprecedented to provide lowinterest funding to critical areas.

What are you doing besidesthrowing money at theproblem?

The reason we are partneringwith the government is becausewe realise that you cannot justsolve a problem by justthrowing money at it. In fact, itis counter productive; theMemorandum ofUnderstanding with statesactually defines the frameworkwithin which money is beinggiven. We at the CBN have sixentrepreneurship developmentcentre, we train. We’ve had thispartnership withE n t r e p r e n e u r s h i pDevelopment Centre, EDC, foryears, and we’ve beenproducing thousand of peopleand they need not find itdifficult to get job.

What we are doing is that,they come in for longer period,they come in as an economicvalue chain; before they comein, and before they leave weknow exactly what they aregoing to do and these financethen provide them with thecapital to take off.

Is an entire ecosystem whereit is like agriculture, industry,money only set within aneconomic system, what we aredoing is to create silos, wherethe CBN work with the bankand lend money and nothinghappens, now working with thegovernment, we say this isdevelopment, there is need foreducation, training,infrastructure and need forfinance. We can only providefinance, but we want to make

sure you’ve provided otherthings. Things like collateral,how do you lend money to awoman in the village and thenexpect her to pay back?

In Kano they set upcommunity orientation

council in every localgovernment and in the village,you have the village head,IMAM, elders. You come andyou borrow money in front ofeveryone, everybody knowsyou have borrowed, nocollateral and you are to payback in 18 months and if youdon’t pay back, your brothersand your sisters won’t get theloan if they come requestingfor it. They will pay back andmost interesting is the way westructure these microfinancebanks, if we lend to people inthe state and we get fully paid,the state is able to get twice thatamount, at a lower rate ofinterest. If you think out of thebox, you find out that for awoman in a traditional villagethe humiliation of being seenas responsible for other peoplenot getting the money is morethan the fear of losing land andis far more effective collateraland it works, that is basicallywhat we are doing.

You put up policies whereyou make five banks that areunder your supervision toencourage gender in Nigeriainitiative, what are you doingto encourage the banks andthe big financial institutions toadopt it properly; what are youdoing to actualize this policy,is CBN going to change therule or change the policy?

Banks and Other FinancialInstitutions Act, BOFIA, is veryclear; the board of the bank canapprove a policy around anybank it chooses. There isconfusion in interpretation ofbad loan, what BOFIA says isthat you can not lendunsecured except you arerelying with the created policyapproved by the board. In anycase, we are not asking thebanks to lend unsecured. Landis not the only form of collateraland land is often not the bestform of collateral, a lot of thetime is just a lazy way oflending people who do notwant to follow the cash flow andcollect which is easier way youget paid and you can structurethese things in such a manner.

Rural land is not a goodcollateral but we’ve designedmethods of 15 value chains,unlocking ourselves into thecash flow chain, we make surethat the money disbursed topurchase seed, fertilizer, thatthe farmers are supervisedwhen they plant, that the goodsare moved to the end buyer andthe buyer pays into the bankand we do that with a numberof project that we have done,is just about being innovativeand there are people thatfought for this, institution thatfought for this and women whocan actually train themselvesand design these producteveryday.

Every time wefocus on interestrate we forgotthe point, thepoint is that weare not doingdevelopment, itis the role of thestate to provideelectricity,security.

•Sanusi Lamido, CBN Governor

By PROVIDENCE OBUH


E-Commerce

The objective of the waiverpolicy, the

implementation of which wasreviewed and strengthened inlate 2011 is to curb the abusesand inefficiencies of theprevious regime…There isevidence that it is working toboost key sectors of theeconomy.” Federal Ministry ofFinance in November 2013.

On Monday, December 2,2013, the PUNCH published alist of recipients of N65.23billion in the last 24 months.Shell Petroleum DevelopmentCompany, collected N16.295or 25 percent; Niger DeltaPower Holding Company,received N15.1billion or 23.2percent. So, two entities alonewere beneficiaries of 48.2percent of the total. Otherlucky recipients included thefollowing: Federal Ministry ofHealth, N4.9 billion; RiversState Ministry of Power; N3.76billion; Federal Ministry ofPower; N4.17 billion;Geometric Power Ltd; N1.3billion and Netco DietsmannCompany; N6.63 billion whieRivers State Government gotN2.08 billion. There were a fewother recipients of the largesse,but, the list presented above,and which accounted for over85% of the waivers, raises morequestions about whether theabuses had actually beencurbed or made worse.

Most Nigerians would wantto know what the recipientsdid with the funds madegenerously available to them.But, more importantly, the

Duty waivers, SWF & ECA: Threemusketeers of economic management,

,

narrow geographical spread ofthe recipients call into questionthe objectivity of the FederalMinistry of Finance ingranting the waivers. Theclaim that “there is evidencethat it is working to boost keysectors” can easily be disputedby pointing out that thewaivers granted to the NigerDelta Power HoldingCompany had not resulted inincrease in power supply tothe country. Neither has theN1.2 billion granted toGeometric Power Ltd, a privatecompany, in which the formerMinister for Power, ProfessorNnaji, has substantial stakes,improved the situation.

Similarly, waivers given tothe Federal government andthe Rivers State governmentcannot, by any stretch of theimagination, be considered asboosters to any sector of theeconomy – key or not.Certainly, they have made noimpact on manufacturing oragriculture, on food andbeverage, pharmaceuticals,banking, insurance andeducation, as well as exports.So, where is the “evidence thatit is working?” One thinghowever is obvious. A quickglance at the list of recipientswould reveal that they wereall friends of the

administration. The Minister ofPetroleum Resources, aseverybody knows, was anExecutive Director of Shellbefore coming into government.The waivers granted to RiversState preceded the currentpolitical disagreementsbetween the state governor andthe President.

The more the FederalMinistry of Finance tries towriggle out of the charges ofnepotism made against it, themore it presents evidence forits own conviction. With theexception of the N1.33 billiongranted to the CocoaAssociation of Nigeria and theFederal Ministry of Health,

every waiver granted went toan organization in the SouthSouth or South East. Theremaining four zones – NorthCentral, North East, North Westand South West — got next tonothing. Was that a truereflection of the economicactivities in the country or wasit deliberate distribution of ournational wealth in favour of afew people in those two zones?

Apart from Duty waiver, theFederal government is still incourt over the creation of theSovereign Wealth Fund, SWF,and funding it to the tune of $1billion. The original idea wasto build up the fund gradually,over time, to serve as a cushionif in the future earnings fromexports, especially crude, dropsharply. Nigeria is not the onlycountry maintaining SWF. And,it needs to be restated here thatit is a good idea – in principle.But, like all good ideas, inprinciple, adoption of it by theFederal Government suffersfrom two major drawbacks.First, it is doubtful if theconstitution of Nigeria allowsthe Federal Government todeduct, upfront, from revenuethat must be paid into theFederation Account andcompels the states to save theirmoney by creating the SWF.Second, the Federal

Government will manage theSWF on behalf of the states.Granted, all the 36 states arerepresented on the unwieldyboard managing the fund, theChief Executive is still aFederalGovernment appointeeand the decisions concerningthe investments to be made willbe heavily influenced byF e d e r a l G o v e r n m e n tpreferences. Already, manypeople are pointing out that theMinister of Trade andInvestments, Mr SegunAganga, was a top manager ofGoldman Sacks, one of theinvestment houses selected tomanage the fund. GoldmanSacks lately has had a spottyperformance record lately andwould probably not be thechoice of those investing theirown funds. But, the FederalGovernment had selected itand the states must go alongwhile the SWF lasts.

It might not last long becausethe Supreme Court will soondeliver judgment on itslegality.Excess Crude Account,ECA, is another “rainy day”account unilaterally created bythe Federal Government.Nobody needs to be a SeniorAdvocate of Nigeria, SAN, toknow that this account wascreated during the Obasanjo'Okonjo-Iweala regime.

“

IBFCAgusto TrainingLimited, a training

consulting firm, has developedan electronic learning versionof its Fundamentals of CreditTraining Program to help drivecredit management in thebanking sector.

Unveiling the product inLagos, the Managing Director,IBFCAgusto Training Limited,Mrs. Titilayo Olujobi,said theproduct would educateNigerian lenders better on creditmanagement and help to avertanother crisis in the financialsector. According to her, “thisissue of training came to the foresometime in 2009 when we hadthe banking crisis, we nowrealized the fact that a lot oforganization were growing

IBFCAgusto develops e-solution for creditmanagement in banking

Stories byJONAH NWOKPOKU

bigger, but they did not havethe knowledge base to cope withtheir growth. Also because a lotof people in the banking sectordid not know what they weredoing, they didn’t know muchabout credit and thiscontributed to a highpercentage of non- performing

loans which led to the crisis.This is why we needed to

respond to the need of theenvironment to meet the needsof our clients. And we agreedthat one of the flagships for usis training. We decided to gointo e-learning starting withfundamentals of credit.

“So we made sure that wedeveloped a product that shouldaddress our local needs but alsoconforms to internationalstandards. In developing thisproduct which is targeted atNigerian lenders, we areleaning heavily on the localcapital market knowledge and

our case studies used localreferences and materials. Sowhat we are doing is bringing aproduct that is targeted atNigerian lenders and that anyrelationship manager or creditperson will be able to relate toimmediately.” Also speakingabout the product, theManaging Director, StandardBank, Mrs Sola Adesola, saidthe initiative is a progressive oneand “an important milestone thatwill aid the growth andaspiration of the financialservices sector to be world class.”

Nigeria’s onlineretailer ’s website,

Konga.com recently crashedwhen it witnessedunprecedented traffic fromonline shoppers vying toexploit discounted salesopportunity of its "Black Friday"sales. Narrating the experience,Konga’s Public RelationsStartegist, Ifeanyi Abrahamtold Vanguard that the

How traffic surge crashed Konga’s websitediscounted sales platform wasreceived overwhelmingly byNigerians, and thus beat theexpectation and even the levelof preparedness of the company.

“In just over one year ofoperation we decided to bringthe biggest sale in US/Europe’sshopping year, Black Friday andCyber Monday to Nigeria,calling the sale, The Konga.com‘Fall ‘Yakata Sale’; we rolled

ou t ‘A baddest sale everliveth’ campaign on Socialmedia, blogs, Radio, TV andevery other platform available.We announced the time of thesale as 9am on Friday Nov 29,2013, upgraded our serverswaiting for Nigerians to comeand when the time came,Nigerians did not just come;they came at us with everythingthey had.

“The Konga.com websiteexperienced a trafficsurge unprecedented inNigerian onlineshopping history and ourwebsite crashed, but our teamdid not give up, we promisedNigerians the baddest saleever liveth and we keptpushing till we delivered it.,"he said.

Apart fromDuty waiver, theFederalgovernment isstill in court overthe creation ofthe SovereignWealth Fund,SWF, andfunding it to thetune of $1 billion.

Tax Matters


CMYK

With governmentspending rising, it is

important for revenueadministrators to deviseingenious means of improvingtax collection. One sure wayof doing so is automation ofthe tax collection process.

Recently the FederalInlandRevenue Service(FIRS) announced ongoingefforts to automate taxcollection by 2014 with theIntegrated Tax AdministrationSystem (ITAS) to beimplemented on a tailoredmade solution known as theStandard IntegratedGovernment TaxAdministration System(SIGITAS). The primary goalof this project is to re-engineer the taxadministration servicedelivery, eliminate gaps andredundancies in the currentadministrative assessmentprocesses by leveragingtechnology in line with globalbest practices ultimatelyleading to simpler taxpayercompliance.

The objective is to transformthe tax administrationsystems. Optimize itscontribution to nationald e v e l o p m e n t . B r o a d l yspeaking, automation of thetax administration process willengender transparency andefficiency with little humaninterface. The most vitalaspect of SIGITAS will be towiden the tax net, deepencompliance, create a friendlierenvironment for taxation aswell as curb leakages in taxadministration. Also, theintroduction of SIGITAS willstandardize processes whichmean reduced turnaroundtimes for service offerings totaxpayers.

BRIEFS

From left: Guy Kellaway- Category Business Manager Culinary, Nestle Plc; Mrs Olufunmilayo Bantefa; Director of fisheriesMinistry of Agriculture and Coperatives; Dr. Yaqub Bashorun, Permanent Secretary and Prince Gbolahun Lawal, Hon.Commissioner Ministry of Agriculture and Cooperatives at the press conference on the Lagos Seafood Festival at the LagosBar Beach.

Modernizing taxadministration with SIGITAS

,

,

A major highlight of thedeployment of SIGITAS is theautomation of unifiedcommunications andenterprise collaboration,document managementportal, as well as theautomated Value added taxcollection system. ITAS is alsoprimed to support taxpayersin complying withregulations by reducing theadministrative burden onthem and providing easyaccess to information as andwhen due. It is expected thatby the time ITAS is deployedtaxpayers will be able to view

their entire tax history offiling and assessment with theFIRS.

In order jurisdictionswhere SIGITAS had been

introduced such as Mali andRwanda, taxpayers are able touse the platform as a one stopshop- with easy integration ofall tax types- registering a taxID, data of transactions etc.SIGITAS also has the capacityto handle a robust frameworkfor tax roll, assessment,collection, audit, objectionappeals, document handling,reporting, external systemintegration, systemadministration and accountingfor each user.InstructivelySIGITAS offers a platform fortaxpayers and tax authorities

to interact in a moretransparent and confidentialmanner, while also providingvaluable information for thetaxpayer.

The deployment of SIGITASshould be encouraged by allstakeholders for manyreasons. It will among otherreasons reduce the country’sover-dependence on oilrevenue with an expectedsurge in non oil taxes raisingrevenue figures needed forthe development of socialinfrastructure. Also it isexpected that the ITAS willsignal a re-orientation of the

FIRS personnel in terms ofskills and capacity in thebusiness analysis function tomeet the objectives of theinstitution as well asstrengthen the governanceand transparency with fair andequal treatment of taxpayers.And to suit Nigeria’s ethnicdiversity, it can be configuredto be multilingual and offersa water tight securityprotection.

But for SIGITAS to besuccessful there is need forsynergy and integration withother similar projects acrossrevenue generating institutionsuch as the recently deployedTaxpayer IdentificationNumber (TIN) for clearing ofall imports into the country.This essentially brings

importers into the loop of boththe FIRS and Nigeria CustomsService simultaneously. Thishas impacted positively on therevenue collection profile intothe federation account. So alsofor the Taxpayer IdentificationNumber (TIN) integrationcurrently ongoing nationwidewhich is being supervised bythe Joint Tax Board (JTB). TheFIRS also needs to buildmomentum in the synergy withthe Corporate AffairsCommission so as to integratetheir processes especially inthe area of database buildingwhich makes it easier to reachthe untaxed or “hard to tax”.

A successful ITAS projectwill be one that is able tocreate value for allstakeholders by simplifyingtaxpayer complianceprocesses, keeps pace withtechnological innovations,lowers cost of collection withseamless data and exchangeof information synergy withkey stakeholders (MDAs,banks etc) and supportregulatory demands in asimplified manner. It willalsoeffectively encourage self-assessment filing of tax asagainst administrativeassessment.

In summary, ITAS appears tobe the answer to shoring upnon oil tax in the face ofdwindling oil revenues. Arobust technology driven taxadministration will definitelybe able to achieve more if itfully optimizes the latentpower it holds. The future ofNigeria’s social and economicdevelopment depends on atransparent and fair taxcollection system that mustkeep improving to meet withsocial and infrastructuralchallenges.

My agenda forSWAN — Olaolu

The newly electedchairperson, Society of

Women Accountants of Nigeria(SWAN) Mrs. Onome Olaoluhas unfolded her agenda tomove the society forward for thenext two years.

Olaolu who is also theExecutive Director, RiskManagement, Fidelity BankPlc, said:

“My target is to reach out tomarket women and the SMEsin our vicinity, to help themwith basic knowledge of howto keep accounting books andrecord financial transactions.

“I will build on the successesrecorded by the previous excoto run the annual carrier talk.SS1 &SS2 students from publicsecondary school are our targetaudience. We will encouragethem to study accountancy andassure them of requisitementorship support fromSWAN. “I will also organisehealth talks, to help our everbusy members create time fortheir health and well being.

“It is my dream that thesociety will own her secretariatvery soon. At the moment, thisdream may seem tall; however,we are not daunted by thischallenge. The executive willinitiate and aggressively drivethe process."she said.Inaddition, she disclosed that thesociety plans to adopt anorphanage and old people’shome.

female arm of the Institute ofChartered Accountants of

Nigerian Association ofSmall and Medium

Enterprises (NASME) hastargeted to rake in N26 millionfrom its Micro, Small andMedium Enterprises (MSME)International Conference andExhibition.

The conference which has thetheme ‘MSME as Catalyst forEconomic Transformation andSocial Stability,’ will kick-offtomorrow in Abuja.

A document made available toVanguard by NASME, showedthat the money is to be raisedthrough sponsorshipcollaborations with companiesin the public and private sector.

A breakdown of the figureshowed that while platinumsponsorship cost N10 million,the gold and silver sponsorshipgo for N6 million and N4million, respectively.

NASME targetsN26m from MSMEconference

By WALE OSHIKOYA

BY PROVIDENCEOBUH

Broadly speaking, automationof the tax administrationprocess will engendertransparency and efficiencywith little human interface.


CMYK

Agric

THE Federal government said the fertilisersub-sector had received $15.7 billion

boost of investment from foreign and localinvestors.

This was disclosed by the Minister ofAgriculture and Rural Development, Dr.Akinwumi Adesina, while commending thecommercial farmers from Zamfara State forembracing policies in the agricultural sector.

Adesina said the government had succeededin weeding out corruption from the process offertilisation distribution and sale, thereforeincreasing the number of seed companies from10 to 30 within one year.

Adesina said: “The investment by fertilisercompanies in the sector just went off the roof.Alhaji Dangote is putting $9.2 billion intomanufacturing and fertiliser plant. Indoramais putting in $5 billion to develop a big fertilisermanufacturing plant and Notre is putting $1.5billion with the Mitsubishi Corporation of

NVMA accuses FG of neglectinglivestock industrySTORIES BYGABRIEL EWEPU

THE Nigeria VeterinaryMedical Association,

NVMA, yesterday accusedthe federal government forneglecting the huge economicpotentials in the livestockindustry.

Speaking at a pressconference, President of theassociation, Dr. GaniEnahoro, said governmenthad failed to tap the massiveresources in the livestock sub-sector as much emphasis wasstill laid on the oil and gassector.

Enahoro said: “Nigeriaought to step up inrecognising so many dormantresources, non-oil reservesand potentials, and as suchthat exists in animal andlivestock resources. We havea lot of potentials trapped thatthe attention given to the oilsector has allowed such areasto remain untapped.

“We need as a country to de-

emphasize our dependenceon oil alone as a revenueearner. The problem ofunemployment and attendantcriminality associated can bereduced drastically through alarge scale governmentinspired animal farming. Weshould use the opportunitiesin livestock production toreduce youth unemploymentin this country.

“The minister of Agricultureand Rural Development, DrAkinwumi Adesina is doingwell in the agriculturaltransformation agenda, asveterinarians we believe theemphasis on crop is toooverwhelming such that thelivestock transformationagenda is not been given thedue attention, despite thehuge resources that isobtainable in this sub-sectorof agriculture, and it is asource of worry for us.

“We believe as a professionthat if you must have the bestin terms of the availableresources in animals in this

country, we must startthinking of having a separateministry of animal health,livestock production andfisheries.”

According to Enahoro, theassociation has a membershipof over 7, 000 registeredveterinary doctors and nineveterinary schools. He added

that the association wasestablished as a statutoryregulatory body in 1963, afterveterinary medicine wasintroduced as a course ofstudy in 1963 in theUniversity of Ibadan.

He said the association hadmade significantachievements in the livestock

Fertiliser manufacturing receives $15.7 billion boost —FG

industry as its effort had madeNigeria rinderpest diseasefree as certified by the WorldAnimal Health Organisation,WAHO, and following thedexterity of its members avianinfluenza or bird flu wasbrought under control whenit was discovered in Nigeria.

Gani also urged herdsmento be tolerant and havefeelings for crop farmers andavoid unnecessary clashes.

Japan to expand their current plant.“That tells you how many billion dollars

going into the agricultural sector, because wehave opened up the space.

“We cleaned up the corruption in fertiliserdistribution under this administration in 90days, because the President believes that themost important person is the farmer.

“When we started that last year it was a bolddecision we made to weed out middlemen whowere stealing the fertiliser. Today you get thefertiliser with your phone.

Speaking on the strategy used in addressingthe challenge of middlemen and corruptionin the fertiliser sub-sector, the minister saidthe Electronic Wallet that is a phone basedsystem was introduced to eliminate the rot inthe system. He further stated that Nigeria wasthe first in the world to develop the electronicwallet system to deliver subsidised seeds andfertilisers to farmers.

36 — Vanguard, MONDAY,DECEMBER 9, 2013

International

Nelson Mandelaemerged from 27years in apartheid

jails in 1990 pledging to seizeSouth Africa’s mines andbanks. Four years later, hisgovernment slashed spendingand courted foreign investors,paving the way for the longestperiod of growth in thecountry’s history.

The former president andNobel Laureate, who diedThursday at the age of 95, wasinstrumental in getting theAfrican National Congress,which led the fight againstapartheid and has ruled eversince, to embrace an openeconomy.

“Only a Mandela couldhave realigned the ANC’seconomic policy from themindset of the 1950s, with thedevelopment state, withsocialism, withnationalization, to the world ofthe 1990s and beyond,” RobertSchrire, a politics professor atthe University of Cape Town,said in an interview. “Herecognized that for the poor toprosper, the rich had to feelthey had a future in thecountry.”

Yet Mandela’s legacy ofeconomic stability is beginningto come under attack as thecountry fails to slashunemployment and reduceinequality. The jobless rateremains 24.7 per cent, whileaverage earnings for blackhouseholds are a sixth of theirwhite counterparts. The ANC’syouth wing last year waged acampaign for thenationalisation of banks andmines, the very policiesditched by Mandela in 1994,and poor communities havestaged a series of protestsagainst a lack of housing andbasic services.

The rand has plunged 19 percent against the dollar thisyear, the worst performer of 16major currencies tracked byBloomberg, and was trading at10.4751 in JohannesburgFriday. “We still have racialunemployment, racial povertyand racial inequality,” saidSidumo Dlamini, president ofthe 2.2-million-memberCongress of South AfricanTrade Unions, the country’slargest labour grouping and amember of the ruling alliance.“Our country is still in whitehands.” Mandela’s embraceof spending rigour andforeign capital allowed theeconomy to expand for 15years, until the third quarterof 2008, when the globalfinancial crisis pushed it intorecession. That growth and

Mandela’s economic legacythreatened by S. Africa's inequality

rising tax receipts enabled thepost-apartheid government toextend welfare grants to about16 million people and givemore than 85 per cent ofhouseholds access toelectricity, up from 45 per centin 1996.

Instead of nationalizingcompanies, Mandelacoaxed foreign investors

into the country. Hisideological shift laid thegroundwork for LakshmiMittal’s LNM Group to buyAfrica’s biggest steelmaker in2004 and London-basedBarclays Plc (BARC) to takecontrol of South Africa’slargest consumer bank in2005. In 2011, Fayetteville,Arkansas-based Wal-MartStores Inc. bought a majoritystake in the nation’s biggestgeneral-goods wholesaler.

Restoring confidence inSouth Africa’s economy in1994 was a significantachievement. Apartheid hadturned South Africa into apariah state, subjected tointernational sanctions andboycotts. The economy washemorrhaging foreign capital,had only enough reserves tocover 10 days of imports and

was running a budget deficitof 9.1 per cent of grossdomestic product.

Mandela asked ChrisLiebenberg, who had justretired as chief executive

government would not be asastute in managing theeconomy as it should be. Hecame to me because I was abanker with lots ofinternational contacts andexperience.” In his firstbudget, Liebenberg raisedtaxes, equalized the taxsystem for all racial groupsand slashed the defensebudget. Those measureshelped the government toraise $750 million in 1994 inits first post-apartheidinternational bond sale, 50 percent more than originallyplanned. By 1999, theFinance Ministry hadreduced the budget deficit to2.3 per cent of GDP.

Mandela also persuadedChris Stals, the central bankgovernor, to postpone hisretirement by five years tohelp manage the country’stransition.

“We made steady progressfrom day one on for those firstfive years,” Stals said in aninterview. “Our main task wasto bring us back into the worldeconomy. Mr. Mandelacertainly made a majorcontribution to that. The trustpeople had in him and hispolicies certainly enabled usto lay a very good foundation.”

Mandela was sentenced tolife imprisonment after beingconvicted of treason in June1964, serving much of hissentence on Robben Islandnear Cape Town. Hiseconomic thinking wasframed in terms of the ANC’s

investments were safefollowing talks with then-Chinese Premier Li Peng,who told him nationalizationwasn’t viable and that Chinawas considering selling statecompanies.

“The world had changedwhile Mandela was in jail,”said Iraj Abedian, aneconomist who helped craftthe Mandela’sadministration’s 1996hallmark economic policy,which won praise frominternational investors. “Hisengagement with the roleplayers in the political,economic and financial worldbrought that reality home.”

Mandela helped set thebroad parameters of economicpolicy, while leavingformulation and execution tohis subordinates, according toLiebenberg, who now helpsmanage charities establishedby the former president.“Until Mandela set his stampon a policy I think it wouldnot have been possible todrive it through the ANC,”Liebenberg said. “It certainlywould not have been possibleto drive it throughgovernment.”

Abedian, now CEO ofPan-African CapitalHoldings, a

Johannesburg-based advisoryservice, was struck by theattention to detail thatMandela, a trained lawyer,gave to policy making.

“He would go throughevery document word byword, line by line,” Abediansaid. “It was a question ofunderstanding the rationalefor every step, weighing it up,questioning it in detail, farmore than people wouldbelieve.” Stals recounts howafter Trevor Manuel wasappointed finance minister in1996 and the rand tumbled8.8 per cent in the space of amonth, Mandela wouldphone him two or three timesa day for market updates.

“He showed a great interestin what we did and he wasalways quite well-informed,”said Stals. “He liked todiscuss the monetary policyissues. He never reallyinterfered, he never reallygave instructions.”

Still, the stability thatMandela engineered in thoseearly years after apartheidnever made South Africa aneconomic dynamo. Economicgrowth has averaged 3.5 percent since 2004, comparedwith 10.5 per cent in Chinaand 7.7 per cent in India.

Moreover, the Ginicoefficient, a measure ofincome inequality, has risento 0.63 in 2009 from 0.59 in1993, making South Africaone of the world’s mostunequal societies.

,

,officer of what is nowNedbank Group Ltd., thecountry’s fourth-largest bank,to become finance minister.He accepted the job oncondition that South Africawould have a market-relatedeconomy and exercise fiscaldiscipline.

“Those were tough times,”Liebenberg said in aninterview. “We were headingfor bankruptcy. Mandela wasvery mindful that the ANChaving not been in

1955 Freedom Charter, whichcalled for the country’smineral wealth and banks tobe transferred to theownership of the people.

“The question ofnationalization of mines is afundamental policy of theANC,” Mandela said shortlyafter his release. “I believe theANC is quite correct in thisattitude and we shouldsupport it.”

A year later, he assuredforeign companies their

Yet Mandela’s legacy ofeconomic stability isbeginning to come underattack as the country failsto slash unemploymentand reduce inequality.

•Mandela

Vanguard, MONDAY,DECEMBER 9, 2013 — 37

CMYK

Business Tribute

By WAHEED OLAGUNJU

Based on myassociation withChief Rasheed

Abiodun Gbadamosi over thepast three decades writing aconcise tribute can be quitechallenging. In this period, hehas meant quite a lot to me inmany ways. From being ahighly authoritative anddistinguished resource personwhile I was Head of theEconomy Desk at the NetworkNews of the NigerianTelevision Authority in themid eighties to becoming ahighly respected boss at theerstwhile Nigerian IndustrialDevelopment Bank (NIDB),which is the Bank ofIndustry’s (BOI) precursorinstitution, where he served asits longest serving Chairmanbetween 1986 and 1994.Within that period, ChiefGbadamosi also served asChairman of the NationalCommittee on IndustrialDevelopment (NCID) that wascharged with the

Tribute to Uncle Rasheed- a Great Mentor of All Times

responsibility of drawing upNigeria’s Industrial MasterPlan in collaboration with theUnited Nations IndustrialDevelopment Organisation(UNIDO). I was similarlyprivileged to work with himon that epochal nationalassignment. He has since hispost NIDB days remained abig uncle and mentor. Shortlyafter witnessing his beingsworn in as Minister ofNational Planning in 1998 atthe State House in Abuja, Iwas given the honour ofmaking input into theappointment of his ministerialaides. The mentoring hascontinued till date.

I remain grateful to ChiefGbadamosi and MallamIbrahim Aliyu, the ManagingDirector and CEO of NIDBbetween 1989 and 1991 forjointly head hunting me fromNTA News into joining NIDBin 1990. Their inspiring andprecious support for me thenas a Senior Manager alongwith those of their colleagueson NIDB’s board, notably Mr

Victor Odozie, then DeputyGovernor, Central Bank ofNigeria and Chief (Mrs) NikeAkande who later becameMinister of Industry andAlhaji Saidu Kasimu, whoserved up till August 2001 asthe last MD & CEO of NIDBprior to the emergence of BOIin October 2001, prepared mefor higher responsibilities.Based on the initial capacitybuilding and the solidfoundation that theyprovided, their successors inthe post NIDB era found merelevant and I was able to rise,over a period of 23 years, frommiddle and seniormanagement grades to beingappointed CompanySecretary and eventually anExecutive Director on theBoard of the Bank of Industry.

In the course of interactingwith Chief Gbadamosi,attending official, social andfamily events with him as wellas undertaking local andforeign trips with him,especially study tours anddevelopment focused fora, I

have had the privilege ofbroadening my exposurewithin and outside Nigeriaand tapping into ChiefGbadamosi’s deepknowledge, wealth ofexperience and extensivenetwork of domestic andforeign contacts. My maidenflight on board the concord,with him, between Londonand Bangkok for the WorldBank Annual Meeting in1991 would remainunforgettable. Most of hissterling qualities that include

insatiable quest forknowledge, hard work, drive,enterprise, philanthropy,penchant for excellence andperfection as well as values,ethics and beliefs have rubbedoff on me considerably andhave continued to propel andguide my career and familypriorities particularlyinvesting heavily in humancapital development andpaying considerable attentionto the upbringing andeducation of ones children.

As we join you and our dearaunty Tinu - your darlingwife, Kunbi and her siblingsas well as the entire SOGfamily led by its strong andcharming matriarch, auntyWonu Folami, a.k.a mamaHakeem, in celebrating your70 years of your verysuccessful life, in the courseof which you have continuedto make phenomenal positiveimpact on nation building,humanity, different spheresof our society including thearts and music, private sectordevelopment and governanceat state and national levels,may the Almighty Allahcontinue to prosper you andall yours as well as endowyou all with long life, goodhealth and happiness.

•Rasheed Gbadamosi

38

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CMYK

Sim Capital Alliance Plc 103.50 103.50 103.50 103.50 10.56 9.71Stanbic IBTC Bank Plc 19.40 19.50 420,890 15.69 10.64 0.87 18.03UBA Capital Plc 1.50 1.39 1,119,792 1.41 0.03 0.21 6.71

HEALTHCAREMedical SuppliesMorison Industries Plc 2.01 2.23 785 10.54 9.52 0.00 0.00Healthcare ProvidersUnion Diagnostics & Clinicals Services 0.50 0.50 2,000 0.50 0.50 0.00 0.00

PharmaceuticalsEkocorp Plc 3.91 4.32 286 5.31 5.31 88.50Evans Medical Plc 3.35 3.22 400 1.45 0.70 0.19 0.00Fidson Healthcare Plc 2.42 2.10 631,421 3.20 0.83 0.44 3.07Glaxo Smithkline Consumer Nig 65.00 65.00 9,809 23.11 2.58 2.62May & Baker Nigeria Plc 2.15 2.05 75,580 5.61 3.61 0.20 9.05Neimeth International Pharm 1.14 1.12 703,300 1.96 0.95 0.09 14.13Nigeria-German Chemicals Plc 7.36 7.36 100 12.91 0.95 0.00 0.00Pharma-Deko Plc 1.85 1.85 5,000 200 4.28 0.00 0.00

ICTComputer Based SystemsCourteville Investment Plc 0.63 0.61 451,000 0.52 0.50 0.10 10.00

Computers and PeripheralsOmatek Ventures Plc 0.50 0.50 9,200 0.50 0.50 0.00 12.50

IT ServicesNCR (Nig) Plc 16.83 16.83 1,000 9.31 3.25 0.00 1.43Tripple Gee and Company Plc 2.07 2.07 5,000 3.59 3.25 0.01 0.00Processing SystemsChams Plc 0.50 0.50 4,200 50,000

ICTTelecommunicationsStarcomms Plc 0.50 0.50 4,000 1.47 0.50 0.00 0.00

INDUSTRIAL GOODSBuilding MaterialsAshaka Cement Plc 20.90 21.10 907,141 30.00 12.00 2.14 7.86Berger Paints Plc 8.00 8.00 33,791 12.57 8.10 1.09 4.97CAP Plc 50.00 50.00 245,135 43.98 15.16 2.28 8.88Cement Co. of Northern Nig. Plc 10.05 9.30 114,288 15.49 4.16 1.47 2.31Dangote Cement Plc 195.50 195.00 48,934 132.51 95.00 7.56 13.17First Aluminium Nigeria Plc 0.50 0.50 58,000 0.75 0.50 0.00 0.00DN Meyer Plc 1.49 1.47 227,367 3.51 1.02 0.00 0.00Lafarge WAPCO Plc 100.00 100.00 91,897 48.05 36.58 4.10 42.86Portland Paints & Products Nig Plc 6.25 5.68 1,500 5.28 5.11 0.44 14.19Paints & Coatings Manufacturers 2.00 1.95 201,439 3.36 0.51 0.23 2.89Premier Paints Plc 10.93 10.93 30 13.40 10.93 0.00 0.00

Packaging/ContainersAvon Crowncaps & Container 1.71 1.71 1,000 6.91 5.94 0.5 39.60Nigerian Bags Manufacturing Company 2.74 2.70 2,717,101 3.60 1.47 0.25 9.16

Tools and MachineryNigerian Ropes Plc 7.85 7.85 40 8.69 8.26 0.00 0.00

NATURAL RESOURCESChemicalsBOC Gases Plc 6.66 6.66 1,000 9.20 6.80 0.78 7.37

MetalsAluminium Extrusion Ind Plc 7.75 10.55 500 12.39 10.70 0.13 85.77

Non-Metalic Mineral MiningMultiverse Plc 0.50 0.50 170 0.50 0.50 0.01 0.00

Paper/Forest ProductsThomas Wyatt Nig. Plc 0.87 0.87 43,412 1.38 1.38 0.00 0.00

Electronic and Electrical ProductsCutix Plc 1.70 1.78 162,970 2.50 1.62 0.11 13.15Nigerian Wire & Cable Plc 0.50 0.50 840 2.58 2.58 0.00 0.00

Mortgage Carriers, Brokers and SeAbbey Building Society Plc 1.44 1.44 2,000 1.51 1.33 0.03 28.80INDUSTRIAL GOODSPackaging/ContainersAbplast Products Plc 3.98 3.98 6,888 3.98 3.98 0.00 0.00Beta Glass Co. Plc 13.75 13.75 916 15.58 12.71 3.90 3.26Greif Nigeria Plc 12.68 12.68 150 15.03 13.97 0.90 0.00Nampak Nigeria Plc 4.30 4.30 29,198 4.30 3.60 1.22 3.52Poly Products (Nig) Plc 1.05 1.05 200 1.86 1.05 0.30 6.18Studio Press (Nig) Plc 2.92 2.78 84,311 2.92 2.92 0.07 41.71W.A. Glass Ind. Plc 0.63 0.66 2,749,340 0.63 0.63 0.00 0.00

OIL AND GASEnergy Equipment and ServicesJapaul Oil & Maritime Service 0.50 0.50 1,277,086 0.97 0.87 0.19 6.06

Intergrated Oil and Gas ServicesOando Plc 15.80 14.06 12,878,194 78.97 27.99 1.73 4.17

Petroleum and Petroleum ProductsAfrican Petroleum Plc 20.50 20.50 82,191 37.10 0.50 4.93 7.40Beco Petroleum Plc 0.50 0.50 10,000 0.70 0.50 0.00 0.00Conoil 67.93 67.93 15,000 5.59 3.89 0.61 6.99Forte Oil Nig Plc 108.30 114.00 2,438,628Mobil Oil Nigeria Plc 120.00 114.53 25,670 163.50 141.00 6.11 11.11MRS Oil Nigeria Plc 54.44 54.44 184,538 2,100 63.86 2.98 19.23Total Nigeria Plc 165.01 165.01 44,188 240.00 195.50 14.63 17.07

HospitalityTantalisers Plc 0.50 0.50 10,000 200 0.01

SERVICESAfromedia Plc 0.50 0.50 100 0.72 0.51 0.00 12.75Automobile/Auto Part RetailersRT Briscoe Plc 1.47 1.20 673,472 3.65 1.30 0.21 8.19

Courier/Freight/DeliveryRed Star Express Plc 4.41 4.20 15,000 3.67 2.65 0.60 4.91Trans-National 1.20 1.22 100,000 0.25 11.12Employment SolutionsC & I LEASING PLC 0.52 0.51 4,847,760 1.64 0.90 0.04 11.25

Hotels/LodgingCapital Hotel 4.55 4.55 1,000 400 3.00 0.34 34.09Ikeja Hotel Plc 0.72 0.72 447,121 2.07 1.33 0.92 2.12

Media/EntertainmentDaar Communications Plc 0.50 0.50 3,000 0.50 0.48 0.00 0.00

Printing & Publishing.Academy Press Plc 2.55 2.07 21,524 3.68 3.17 0.25 12.19Learn Africa Plc 2.10 2.03 448,878 0.30Studio Press Nig. Plc 2.52 2.52 100 0.00 0.00University Press 3.82 3.70 44,087 6.82 3.60 0.54 27.69

Road TransportationAssociated Bus Company Plc 0.77 0.80 599,772 0.80 0.50 0.00 0.00

SpecialityInterlinked Technologies Plc 4.90 4.90 1,050 5.15 4.90 0.00 0.00

Transport-Related ServicesAirline Services and Logistics Plc 3.61 3.60 43,600 2.78 1.57 0.60 4.22Nigerian Aviation Handling Company 6.10 5.85 456,927 11.75 6.50 12.53 8.75

Opening Closing Quantity Year Year P.EPrice N Price N Traded High Low E.P.S Ratio

Oil and Gas and ProductsPetroleum Prod uctsCapital Oil Plc 0.50 0.50 50,000 0.50 0.50 0.09

1st fTier SecuritiesAGRICULTURECrop ProductionFTN Cocoa Processors Plc 0.50 0.50 207,000 0.50 0.50 0.10 50.00Okomu Oil Palm Plc 43.00 42.40 526,090 24.58 14.53 7.33 2.77Presco Plc 37.20 36.55 41,198 8.30 6.40 2.75 4.37

Livestock/Animal SpecialitiesLivestock Feeds Plc 4.66 4.19 636,807 0.66 0.48 0.11 15.00

CONGLOMERATESDiversified IndustriesA.G. Levents Nigeria Plc 1.55 1.64 107,583 2.54 1.45 0.16 5.18Chellarams Plc 4.15 4.15 100 7.60 6.43 0.31 20.74John Holt Plc 1.17 1.29 6,066 8.82 5.89 0.00 0.00SCOA Nigeria Plc 5.32 5.32 33 8.28 5.52 0.35 15.77Transnational Corporation 3.93 3.56 247,794,242 1.82 0.50 0.24 3.64UACN Plc 63.75 63.75 248,853,487 42.50 28.70 6.89 4.14

CONSTRUCTION/REAL ESTATEBuilding Construction/StructureARBICO Plc 5.05 5.05 20,000 4 20Constain (WA) Plc 1.24 0.93 803,770 2,720,390.38

CONSTRUCTION/REAL ESTATENon-Building/Heavy ConstructionJulius Berger Nig Plc 69.00 69.00 78,121,234 62.26 32.96 4.11 10.11Roads Nigeria Plc 8.46 8.46 400 8.28 3.01 4.73 2.26

Real Estate DevelopmentUACN Property Development 18.00 18.00 187,562 20.15 11.59 1.69 7.33

Real Estate Investment TrustsSkye Shelter Funds 100.00 100.00 1,000 100.00 97.00 11.75 8.51Union Homes Real Estate Investment 50.00 50.00 - - - - -

CONSUMER GOODSAutomobile/Auto PartsDN Tyres & Rubber Plc 0.50 0.50 10,000 0.50 0.50 0.00 0.00

Beverages-Brewers/DistillersChampion Breweries Plc 16.99 16.95 1,339,945 4.63 2.23 0.00 0.00Guinness Nigeria Plc 260.00 260.00 354,770 255.00 186.00 9.95 19.98International Breweries Plc 23.88 22.21 382,462 7.10 5.23 0.41 16.29Nigerian Brew Plc 164.00 168.41 365,235 100.00 72.50 5.08 22.22Premier Breweries Plc 0.77 0.77 10,000 1.01 0.93 0.00 0.00

Beverages-Non-Alcoholic7-UP Bottling Company Plc 71.40 71.40 12,400 51.49 ,39.00 2.69 13.92

Food ProductsDangote Flour Mills Plc 9.35 9.60 1,268,000 19.90 4.31 0.00 16.91Dangote Sugar Refinery Plc 11.07 11.00 586,494 16.20 4.02 0.91 14.38Flour Mills Nigeria Plc 91.80 89.20 421,575 95.00 57.00 4.09 16.89Honeywell Flour Mill Plc 3.02 3.00 721,651 6.60 2.31 0.39 16.92National Salt Co. Nig Plc 12.78 12.77 466,647 6.70 3.80 1.01 5.75UTC Nigeria Plc 0.67 0.62 50,000 0.88 0.50 1.13 8.83

Food Products-- DiversifiedCadbury Nigeria Plc 62.30 62.85 512,210 37.27 8.33 1.35 27.61Nestle Nigeria Plc 1,200.00 1,249.50 49,948 840.10 400.00 25.43 32.84

Household DurablesNigerian Enamelware Plc 32.27 32.27 60 36.19 33.96 13.89 2.44Vitafoam Nig. Plc 4.39 4.60 285,550 5.54 2.91 0.61 7.07Vono Products Plc 1.76 1.59 85,394 2.88 2.88 0.00 0.00

Personal/Household ProductsPZ Cussons Nigeria Plc 37.50 37.50 226,135 41.02 21.02 0.82 4.39Unilever Nigeria Plc 60.56 61.40 275,638 47.39 27.60 1.44 32.91

FINANCIAL SERVICESBankingAccess Bank Plc 9.62 10.00 8,407,712 12.39 4.70 1.42 8.73Diamond Bank Nigeria Plc 6.76 7.00 729,000 7.51 1.92 0.90 8.34Ecobank Transnational Incorporated 14.79 15.00 350,059 14.04 9.90 2.81 5.00Fidelity Bank Plc 2.59 2.67 4,224,561 3.47 1.13 0.43 7.93First City Monument Bank Plc 4.75 4.75 865,336 5.70 2.90 0.00 0.00Guaranty Trust Bank Plc 27.00 27.30 4,637,733 26.09 13.02 2.10 12.39Skye Bank Plc 4.18 3.98 2,621,702 6.50 2.65 0.71 9.15Sterling Bank Plc 2.30 2.28 1,040,917 3.05 0.80 0.54 5.43UBA Plc 7.77 7.51 10,176,834 7.69 1.64 0.67 11.19Union Bank Nig. Plc 10.00 10.10 1,098,345 10.60 2.34 0.00 0.00Unity Bank Plc 0.57 0.55 44,709,336 1.22 0.50 0.00 0.00Wema Bank Plc 1.15 1.14 5,420,229 1.75 0.52 1.34 0.43Zenith Bank Plc 21.27 21.30 16,539,540 21.49 11.96 2.09 10.24

Insurance Carriers, Brokers and SectorAfrican Alliance Insurance 0.50 0.50 1,000 0.50 0.50 0.00 0.00AIICO Insurance Plc 0.89 0.86 757,897 1.11 0.50 0.50 22.20Continental Reinsurance Plc 1.15 1.15 1,354,780 1.03 0.58 0.14 6.79Cornerstone Insurance Company 0.50 0.52 252,644 0.54 0.50 0.02 27.30Consolidated Hallmark Insurance 0.50 0.50 300,000 0.50 0.50 0.50 10.00Custodian and Allied Insurance Plc 1.81 1.81 62,698 2.44 1.08 0.28 7.43Equity Assurance Plc 0.50 0.50 118,178 0.50 0.50 0.01 50.00Goldlink Insurance Plc 0.50 0.54 62,500 0.68 0.50 0.00 0.00Great (Nig) Insurance Plc 0.50 0.50 150 0.50 0.50 0.03 16.67Guinea Insurance Plc 0.50 0.50 150 0.50 0.50 0.01 50.00International Energy Insurance Plc 0.53 0.53 674,113 0.50 0.50 0.00 0.00Investment and Allied Assurance 0.50 0.50 1,670,890 0.50 0.50 0.02 25.00LASACO Assurance Plc 0.50 0.50 52,000 0.50 0.50 0.00 0.00Law Union & Rock Insurance Plc 0.50 0.50 7,954 0.60 0.50 0.00 0.00Linkage Assurance Plc 0.50 0.50 100,000 0.50 0.50 0.03 16.67Mansard Insurance Plc 2.35 2.30 867,094 2.59 1.06 0.16 16.19Mutual Benefits Assurance Plc 0.50 0.50 900 0.54 0.50 0.00 0.00NEM Insurance Co. (Nig) Ltd 0.59 0.58 3,995,000 0.81 0.50 0.37 2.19Niger Insurance Co. Plc 0.50 0.50 10,000 0.61 0.50 0.02 26.00OASIS Insurance Plc. 0.50 0.50 100 0.50 0.50 0.03 16.67Prestige Assurance Co. Plc 0.70 0.70 560,623 1.01 0.50 0.06 15.50Regency Alliance Insurance 0.50 0.50 200 0.50 0.50 0.04 12.50Sovereign Trust Insurance 0.50 0.50 100,000 0.56 0.50 0.09 5.65Staco Insurance Plc 0.50 0.50 200 0.50 0.50 0.00 0.00Standard Alliance Insurance 0.50 0.50 20,000 0.50 0.50 0.00 0.00UNIC Insurance Plc 0.50 0.50 7,464 0.50 0.50 0.00 0.00Unity Kapital Plc 0.50 0.50 29,824 0.50 0.50 0.02 25.00Universal Insurance Plc 0.50 0.50 221,000 0.50 0.50 0.00 0.00Wapic Insurance Plc 0.99 0.99 46,225,455 1.08 0.50 0.07 15.43

Microfinance BanksFortis Micro-Finance Bank Plc 6.60 6.60 4,100 6.00 0.00 0.04 150.00

NPF Micro-Finance Bank Plc 0.81 0.77 2,032,000 1.18 0.92 0.92 10.56Mortgage Carrier, Broker and SectorAbbey Building SOC 1.49 1.49 345 1.57 1.37 0.19 47.6 7Aso Savings and Loans Plc 0.50 0.50 6,300 0.50 0.50 0.02 25.00Resort Savings & Loans Plc 0.50 0.50 349,800 0.50 0.50 0.00 0.00Union Homes Savings Plc 0.50 0.50 10,000 0.50 0.50 0.00 0.00

Other Financial InstitutionsAfrica Prudential Plc 2.45 2.06 209,558 0.75 0.00 0.19 9.16Crusader (Nigeria) Plc 0.50 0.50 22,000 0.50 0.50 0.00 0.00Deap Capital Management & Trust Plc 0.99 1.09 140,000 2.02 2.02 0.00 0.00FBN Holdings Plc 16.28 16.11 6,697,183 20.00 8.57 2.03 9.85Nigeria Energy Sector Fund 552.20 552.20 100 552.20 12.68 43.55Royal Exchange Assurance 0.50 0.50 1,470,102 0.78 0.50 0.13 6.00

Opening ClosingPrice Price Quantity Year Year P.E.

Company (N) (N) Traded High Low E.P.S. Ratio

Capital Market Daily Stock Market Report as at Friday, December 6 , 2013


Advertising, Media& Marketing

Cherry (not her real name) works for a foremostNigerian stock broking firm as a contract

marketing staff. She is usually a charming person, butshe easily gives away her dissatisfaction with the termsof her employment. She doesn’t hide the fact that sheis ready to change jobs and will not hesitate to pressher customers into her job search.

Although most of her customers might view her as anice person, Cherry shocked one of them recently bythe way she spoke to him on the phone. The customerhad initiated the call to give her an instruction to buysome shares. Let’s listen in on the conversation.

Customer: Hello, Cherry. It’s been a long time. Youdon’t even bother to call your customers. What’s reallyhappening?

Cherry: Oga, it’s actually not my job to call you. It isfor the relationship guys to call you. Once I getcustomers, I hand over to them. And I know they havebeen sending you emails.

Customer: (shocked) But you are the person I know.I have never met any of the so-called relationshipofficers. Anyway, what about the annual report andaccounts I requested that you send me more than twomonths ago? You never got back to me.

Cherry: Oh. Sorry about that. I told my boss aboutyour request. He should have got back to you. Actually,I’m at a client’s place at the moment. Call me backlater. Customer: Hmmmmmm. Why don’t you call mewhen you’re through with your client?

Cherry: Oga, I cannot use the little money I have tocall you. I mean, I need to pay for my transport faresand other things. I cannot be calling customers withthe little money I get.

True to her stand, Cherry never called the customer.The fact that she was dealing with a longstandingcustomer didn’t make any difference. As incredible asthis encounter sounds, I want to assure you that itactually happened! The customer had done businesswith Cherry for over one year and had helped her signon some of his friends as customers. He was sobewildered that he made up his mind never to dealwith Cherry and her organisation again.

Whatever may have been the cause of Cherry’suncaring attitude to a customer, a few points stick out.Cherry isn’t happy with her organisation. She has nosense of loyalty to both the organisation and hercustomers. She doesn’t understand her role as amarketing officer. She clearly believes her job is doneas soon as an individual agrees to become a customer.She underestimates the power of excellent customerrelations.

Although a number of committed sales people wouldspend their personal money to keep customers happy,some other ones (like Cherry) would not spend a dimeof theirs in the service of a customer. People like Cherryhave an attitude problem. They are so unhappy withtheir work that they never bother to give their customersa call – even when the call might result in a sale onwhich they would earn a commission. To be fair, part ofthe blame ought to go to her organisation. The companymay have very rigid policies that tend to emasculatepeople on the frontline. It may have goofed in puttingits reputation in the hands of people like Cherry.

We have noted in a previous write-up that it issomewhat risky to put “contract” employees on thefrontline for the simple reason that they don’t seethemselves as part of the organisation. Ironically, suchemployees are usually poorly paid and poorly trainedsince the organisation hardly sees them as theiremployees. But they still represent the organisationand it must bear the consequences of suchrepresentation.

There is no telling the number of customers that havebeen lost owing to the uncaring attitude of somedisgruntled employee. You need to watch out foremployees that keep complaining about their conditionof service. You can be sure they won’t deliver excellentservice. And they most likely will complain to yourcustomers. In the final analysis, unless you make youremployees happy, they are not likely to make yourcustomers happy.

Unhappy employees makeunhappy customers

From left: Managing Director, Unilever Nigeria Plc, Mr. Thabo Mabe;Deputy Director, Nutrition, Lagos State Ministry of Health, Mrs.Abimbola Ajayi and Brand Building Director, Unilever Nigeria Plc,Mr. David Okeme during the relaunch of Unilever Knorr Chicken andBeef Cubes in Lagos.

Globally, consumers areincreasingly demanding

for means by which householdtasks can be accomplished withlittle or no stress. They wouldwant to sit in the comfort of theirliving rooms after a day’s joband control virtually all theelectrical appliances in theroom. Nigerians are not inexception; they demandtechnological devices that havehuman interface and can helpthem execute tasks; all thesethey want achieved with latesttechnology reducing costs andrisks.

This informs why corporateorganisations are investingheavily in technologicalresearch in order to meet theneeds of its consumers. One ofsuch companies is globalConsumer Electronics giant, LGElectronics, Samsung, Sonyand Panasonic with plethora ofinnovative and forward-thinking products, are reputablefor churning out products withinteractive technology or simplyput that has smart controlcapabilities.

For example LG and othercompanies in this regard arecontinually converging,bringing content andtechnology together totransform the way consumerslive, work and play.

With the advent of greaterinternet connectivity,improvements in wirelesstechnologies and moreresponsive devices with built-in sensor capabilities, thepotential to have technology do

Trends in smart controltechnology & consumer lifestyle…LG, others contributeStories byPRINCEWILL EKWUJURU

more for humankind has neverbeen greater.

Leading this innovativetechnology is LG Electronicswhich has been able to harnesstechnology and the smartcontrol mechanisms for thebenefit of consumers. This hasallowed consumers to be ableto personalize and engage theirdevices hence, championingthe revolution of smart controltechnology. In a recent research

by networking leader Cisco, it suggestedthat the number of internet connecteddevices is set to explode come 2015 toover 15 billion; this is twice the world’spopulation. The research predicts theproliferation of tablets, mobile phones,connected appliances and other smartmachines will drive this growth andprovides a statistical basis for explainingthe very real evidence we see in oureveryday lives in the changing waydevices are used, and in turn what usersexpect them to do.

Unilever Nigeria Plchas disclosed that over

10billion Knorr cubesseasoning were sold in the2012 sales year, a development,it argued, demonstrated the

Unilever records 10bn cube salesin one year

growing consumers’ confidence in theseasoning brand.

Disclosing this in Lagos at the re-launch event of its cube seasoning, theBrand Building Director, UnileverNigeria Plc, Mr. David Okeme,explained that the Knorr seasoning isbecoming increasingly popular amongconsumers, as evidenced in its sale of10 million units per day and a total of10 billion in the last one year.

He added that the decision to re-formulate the brand was informed by theneed to deliver quality taste for itsconsumers.

Aside its reformulation, Okeme addedthat the packaging of the seasoning hadbeen enhanced to further bond the brandwith the consumers and enhance theircooking experiences.

He explained that though Knorrseasoning brand had been re-formulatedto deliver better quality for consumers, itstill retains the old price as a way ofdemonstrating the brand’s commitmentto constantly give its consumers value fortheir hard-earned money at no extracosts. The Category Manager, Savoury,Mrs. Bolanle Kehinde-Lawal, describedthe re-launch of the brand as imperative,especially at this festive period whenconsumers and lovers of the brand wouldhave the opportunity of trying out the newimproved Knorr cube.

Media entrepreneurs inthe country have called

on the Advertising PractitionersCouncil of Nigeria (APCON) toensure the integrity and ethicalconduct of its members.

The media entrepreneursmade the call recently at theyearly Award and Dinnerorganised by the School ofMedia and CommunicationAlumni Association (SMCAA) ofPan-Atlantic University inLagos. They included theManaging Director of 92.3Inspiration Fm radio Station,Mr. Soni Irabor, the ManagingPartner L5Lab-a venturecapitalist firm with a bias formedia entrepreneurship- Mr.

Media entrepreneurs task APCONon integrity of members

By FRANKLIN ALLI Chika Nwobi, and the Dean,School of Media andCommunication, Pan-AtlanticUniversity, Lagos, ProfessorEmevwo Biakolo. Iraborlamented the huge andprolonged debt profile of manyadvertising agencies in thecountry, and stressed that thesingular development called forethical revolution in mediapractice in Nigeria. Heregretted that APCON seemedincapable of tackling thechallenge, adding that there isindeed no regard for the rule oflaw in Nigeria. “Opportunitiesabound for Media enterprise inNigeria, but the challenges aretoo many. A major challenge isposed by many advertisingagencies who now seems to bethe smartest people on earth.


Email:[email protected], [email protected] page:www.lesleba.com/blog2Website: www.lesleba.comTel:0805 220 1997

Omoh Gabriel - Group Business EditorBabajide Komolafe - Ag. Finance EditorClara Nwachukwu - Energy EditorPeter Egwuatu - Head, Capital MarketYinka Kolawole - Bus. CorrespondentFavour Nnabugwu - Insurance CorrespondentGodwin Oritse - Maritime CorrespondentGodfrey Bivbere - Maritime CorrespondentMichael Eboh - Energy ReporterFranklin Alli - Industry/Agric. ReporterEbele Orakpo - Energy ReporterIfeyinwa Obi - Maritime ReporterRosemary Onuoha - Insurance Reporter

CONTRIBUTORSPrincewill Ekwujuru - Media/MarketingNaomi Uzor - IndustryProvidence Obuh - Micro FinanceLAYOUT - Graphics Department

Business & Economy

O U R T E A MData released by theNational Bureau ofStatistics has shown

that Lagos state internallygenerated revenue for theperiod of 2010-2012 washigher than any other state inthe country. In the reportwhich was signed byStatistician General, YemiKale in collaboration with theJoint Tax Board, Lagos Stategenerated N185.541 billion in2010, N202.761 billion in2011 and N219.202 billion in2012 making it the state withthe highest internallygenerated revenue(IGR).

“First of all, we see patterns.Lagos stands out from the rest

Lagos tops IGR reportof the country, totally in a classof its own. Two, the south istotally different from thenorth and generally theeconomies in the northevidently lag behind,”Opeyemi Agbaje, CEO ofRTC Advisory Services toldCNBC Africa.

According to Agbaje, thedata showed the impact of themajor population andcommercial centres especiallyin Southern Nigeria.

“So we see that the top sevenor eight states are Lagos,Rivers, Delta, Akwa Ibom,Oyo, Enugu, and Cross River.Relatively, the South Weststands out even from the rest

of the South region. All ofthese give you a sense aroundthe state of economicdevelopment in the regions,”he added.

Rivers State came in behindLagos state with N173.047billion and a breakdownshowed that the stategenerated N49.585 billion in2010, 57.187 billion naira in2011 and N66.275 billion in2012.

Data on internally generatedrevenues of stategovernments recentlyreleased by Nigeria’sNational Bureau of Statisticsreveal major disparity inrevenues.

Delta ranked third with themost IGR, the data revealedthat 26.087 billion naira was

collected in 2010, N34.750billion in 2011 and N45.566billion in 2012.

“It also reflects the socialstatistics in terms of

education, entrepreneurialactivities, the development ofbusinesses, the developmentof commerce and industriesacross those regions.”

,,

The slap on the wristsanction of publicservants, who

inadvertently or indeed,knowingly misapply publicresources, have expectedlyengendered increasinglysimilar anti-socialtransactions andcommitments by themanagement of severalministries, departments andagencies nationwide. Indeed,the parlous state of oureconomy is probably theproduct of the challenge ofmoral hazard in thedetermination and operationof our fiscal and monetarystrategies.

Let us briefly discuss therecent history of avoidableand costly somersaults ingovernment policies withregard to our nation’scurrency profile and materialof construction. Prior to2006, currencydenominations of N5, N10,N50, N100, N200, N500 andN1000 were fabricated withpaper, while the N20denomination was convertedto polymer note a yearearlier. Apparently, as aresult of the allegedsuccessful test-run of the N20polymer notes, three otherdenominations, viz; the N5,N10, and N50, which, wereearlier released as new paperdesigns in 2006, were onceagain reissued, but this time,with much more expensivepolymer material in October2009, to complement theexisting N20 polymer notes.

The superiority of polymernotes was, however, identified in CBN’s extensivepublicity campaigns as being“user-friendly, they lookbetter and remain crisp overa long period, and they donot stain, rumple or teareasily....” and will also “savethe nation huge sums ofmoney used for reprinting thetraditional paper notes.

The polymer notes mayindeed be more durable than

PAPER TO POLYMER TO PAPER CURRENCY:

They still don’t get itpaper; however, we knownothing about its cost-effectiveness, vis-à-vis thepaper notes, or indeed, coins,which, despite any roughhandling or harsh climate canlast for over 50 years. Nonetheless, in September2008, we observed in anarticle titled “The Putrid MessAlso in CBN (3)”, that theNigerian public was notdeceived, as they quicklyrecognized that polymer notesfade and peel easily,especially when they are wetor folded. Polymer noteshrivels, when in contact withhot objects, and they are lessamenable to the Nigerianculture of folding notes.

Recently in November2013, however, CBNironically indicated that thepolymer notes it earlierglorified would now bereplaced by the paper qualitydiscarded in 2009! According to CBN’sspokesman, Mr. UgochukwuOkoroafor “Polymer has beenon test-run since 2007; thisexplains why we did not gothe whole hog by printing allthe notes in polymer…. Wesoon discovered that thepolymer notes easily fade outbecause of our peculiar hotclimate in Nigeria, makingthem look tattered when inuse over time.”

So, who is responsible forthe alleged successful earlierevaluation of the durability ofpolymer notes beforecommitting Nigeria to thepurchase of over 1.9bn unitsof these notes between 2006and 2008? Consequently,how much was wasted onproduction and publicitycampaign for this failed

project? I guess, we willnever know.

Nonetheless, the Bank of England recently indicatedthat it would soon introducepolymer banknotes of £5 and£10 denominations …, withpotential annual savings of£10m to the British economy.

So, in view of the failedexperiment in Nigeria, whywould the undoubtedly more

purchasing power of N5, N10,N20 and N50 polymerdenominations in ourcurrency profile; while forexample, the relatively“lowly” £5 sterlingdenomination commandsmore purchasing value thanour N1000 note, our highestpolymer note of N50 is equalto 20 UK pence, which isfabricated as coins. In otherwords, our N50 note isactually doing the job best-suited for metal coins, whichcan last over 50 years, andremain hardwearing despiteclimate, high velocity ofcirculation or roughhandling. This means that,there may be nothing actuallywrong with polymer notes, butwhat is most likelyinappropriate is thedenomination for which theyare applied.

Undoubtedly, CBN’sproposed 2014 reinstatementof N5, N10, N20, and N50paper notes, may beacceptable for a short while,but would certainly, ultimatelybe rejected because of theattendant relatively lowlyvalues, the dirt and grimeafter prolonged use, and thepotential health hazard ofheavy bacteria colonies on thepaper notes.

In this event, in consonancewith earlier practices, theCBN may have once againwasted not only the billionsspent on production, but alsotens of billions more, whichwould be budgeted to promoteacceptance for the ‘new’ papernotes, which regrettably willultimately also be destined tosuffer popular rejection.

Incidentally, in 2006, theCBN had also unsuccessfully

released 50k, N1 and N2 denominations as coins intoour currency profile becausethe extant note forms hadbecome cumbersome andalmost worthless and weregenerally rejected by even“lowly” street beggars! Ultimately, the coins wereauctioned at a small fractionof cost.

Regrettably, despite theundeniable utility value ofprimary kobo coins in anyeconomy, the CBN, seemsincapable of integrating metalcoins into our currencyprofile. However, i t isevident that it would bemeaningless and wasteful toreintroduce kobo coins, ifthese coins commanded thesame abysmally lowpurchasing value.

Redenomination or a two-point decimalisation, forexample, would however,quickly lead to the acceptanceof our erstwhile discardedprimary kobo coins, as a50Kobo coin in such aredenominated profile wouldbe equivalent to over 30 UScents, while a N1 coin wouldbe over 60 US cents or theequivalent of N90 within thepresent currency profile.

Ghana, for example,successfully reintroducedprimary pesewa coins into itscurrency profile after a fourpoint decimalisation in2 0 0 7 . (See our article“Redenomination of GhanaCurrency”, January 2007,ht tp: / /www.lesleba.com/150107.doc). Former CBNGovernor, Charles Soludo,belatedly recognised thewisdom of currencyredenomination, in hisaborted 2007 StrategicAgenda for the Naira, butunfortunately Soludo couldnot stoutly defend this solutionbefore Late President MusaYar’Adua, because the sameCBN had spent billions ofnaira to design, print andpromote a new currencyprofile less than 12 monthsearlier.

socially responsible andbetter-managed Bank ofEngland still adopt polymernotes?

The answer to this questionmay be found in the

Polymer hasbeen on test-runsince 2007; thisexplains why wedid not go thewhole hog byprinting all thenotes inpolymer…. Wesoon discoveredthat the polymernotes easily fadeout because ofour peculiar hotclimate inNigeria, makingthem looktattered when inuse over time.”

financial 09122013

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